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I wonder if people are screwing them up somehow and just shipping them back.
I wonder if they simply ran out of spare parts?
Given that Bachmann eliminated its decades old lifetime warranty policy and began charging for repairs after the advent of eBay, where buyers were/are buying supposedly new, but old products, and sending them in for warranty repairs or replacements, there might be something to this line of thinking.
But that's different from IM not doing any repairs other than those under warranty. So if something broke after the warranty period, you're on your own. Your money is no good at IM!
I think that the difficulty of taking apart and re assembling the cab forwards may have also added to this. They are quite the puzzle, but what do I do with my very expensive loco when it has a problem now...
The same thing you do with your car!