JMC,
As others have pointed out here, S&Ws problems are of their OWN making. They attempted to find an easy way out in exchange for certain promises that they thought would replace lost civilian sales (with Government contracts).
Guess what. They were WRONG. The provision that supposedly shields them from lawsuits isn't working (they're still facing most of the lawsuits that have been filed), and the preferential treatment from the government went down in flames in Congress, as well.
It would also appear to me that S&W's legal counsel really F***ED UP because they didn't craft in any "out" clauses for the government's failure to deliver.
Yes, their employees are at the short end of the stick, but you know what? That's what being an employee means at times, as harsh as that sounds. Lord knows I've been in that position once or twice.
And, to your other point, that the government won...
How? The government loses, actually, in that no other manufacturer is likely to accept this kind of deal and it's "benefits."
By gunowners making a very pointed example of Smith & Wesson with a spontaneous boycott, yes, we may well lose Smith & Wesson.
But we have hopefully gained the rest of the manufacturers. How likely will they be to sign a "corporate soul-removal" document given the following:
1. Government promises regarding lawsuits are worthless.
2. Government promises regarding preferential contract treatment are worthless.
3. The potential for a spontaneous boycott is extreme.
If Smith & Wesson folds, I consider it to be a tragic, but perfectly acceptable, casualty.
With Sig, Ruger, Walther (hopefully they'll get free of the marketing contract with S&W), Beretta, Taurus, Rossi, and the other firearms manufacturers KNOWING what the consequences are, they'll be even more determined to resist this kind of Governmental blackmail.
If you haven't read the provisions of the agreement, I suggest that you do so. To put it mildly, it was extreme, and very likely unConstitutional in that it placed extreme commercial restrictions not only on S&W, but also S&W's dealers all through the chain.
Those S&W dealers are independent contractors. There's another point where S&W's legal team failed. If they didn't see the potential for losing most of their independent contractors, what were they really worth?
Perhaps some people are willing to accept the government pissing on them, being told that it's rain, and then begging for more. I'm not one of those people, thought, and that's why I won't buy a Smith & Wesson product made after January 1, 2000. I don't like the smell of stale urine, or cowardice.
------------------
Smith & Wesson is dead to me.
If you want a Smith & Wesson, buy USED!