never really thought about that, but it sounds like you guys are right. i wouldn't think they'd do it if they felt they couldn't make it work.
a buddy of mine took a guess and thought that if dogfunk felt they couldn't resell the returned boards/boots/bindings that they'd offer them as rental packages to local shops/resorts, since out-of-the-box quality isn't of premium concern in that space.
speaking of reselling, i wonder about those people who say, take it out on the snow for a few days, decide they don't like it, and return it. basically, they take advantage of the policy to try out gear they're unsure of, but don't abuse it to the tune of a whole season. i've never ordered from them but do they try to resell these boards as "used"?