Well I think at first blush that the shipping costs at least one way....whether it is sending the knife back or the replacement out ought to be covered under the warranty.
If it turns out to be defective steel and I can understand their need to check SR should be able to get a credit from their steel suppliers or some form of "balancing" of the costs involved in the resulting warranty work.
However...in fairness to any knife maker...if they buy the steel in they are going to get caught everyonce in a while with a defective batch....it is just the law of averages...but how they deal with that is what makes the difference.Shipping is no small cost to Australia...if you want a Rolls Royce reputation you need to act as they do....fly out a replacement.
If CW had a problem with the tips due to differential temporaring we would have heard about it a long time ago....they would'nt be renowned for their toughness.
If 338 is of the view however that once bitten is enough to steer him onto other Bussekin knives that's his call.....the family still have a customer.
I don't suppose there are now any knifemakers who don't buy in the steel but forge their own? I have'nt heard of anyone doing that....so it is a risk they all must take. The only steel out there which is forged by the makers are the masters still making Samurai Swords the old way in Japan as far as I am aware. There the forging and folding and hamon are distinctive of each maker.
If anyone knows of a knife maker who forges and blends their own steel I would be interested to know?