Quickly, I made roughly the following statement some 3-5 years ago regarding blems: It's all about risk and risk assumption. As long as everything is proper in terms of flaw identification, pricing, disclosure, and warranty, and as long as the customer is perfectly informed and happy with everything, then all is well.
Unfortunately this doesn't always happen in the real world. Believe it or not, not only are gun shops sometimes less than perfectly informed; the same can be said about gun manufacturers, distributors, and end consumers. I care about my reputation, but moreso about my clients. not simply that they walk away initially satisfied, but that they remain so long after the sale.
I REALLY try to be an advocate for those new to 1911s and Dan Wessons, Baers, etc. They are often relatively ignorant about all things 1911, but they are typically trying like hell to become knowledgeable. As such, they often don't know what to look for, or what is fair pricing, or what is acceptable performance, etc. I choose to assume much of the risk for them, by not offering anything other than top quality, and hopefully, reasonable service, advise, instruction, etc. This removes unknowns, and all parties get exactly what they want.
Wouldn't it be interesting, as a hypothetical example, if someone here bought a blem with an "undetectable" flaw, only to find during their first detail strip inspection that the gun did exhibit an internal flaw of some sort. Dont know, but that situation might just exist, outside of the hypothetical. For those here who claim to have "perfect quality" blems, I'd simply offer that folks who build guns for a living don't typically offer to accept less money and identify their product as a blem for no reason...