I really don't think a very big percentage of people were abusing the repair policy, especially since there was the $20 fee. I don't think a very big percentage of people were returning things after holding on to them for a year. The average consumer didn't even realize that you could return things after that long which is why you see so many NWT listed on ebay for less than they cost. The thing about a liberal return and repair policy is that it establishes goodwill even with people who don't take advantage of the policy.
There is a thread where someone bought a bag on eBay figuring they could take it in for a repair and if not repaired get credit. It's not the first time someone has thought or posted that either. To me, that is taking advantage. They figure $20 is little compared to credit they can get. Others have had the $20 waived!