Looking at the physical size of these wall warts, there is no way their amperage is rated high enough for the intended application... there is a huge potential of improper voltage levels.
After reading fully through these threads (here, Denial, comp.sys.cbm etc.) it seems that they were rated properly and the voltages were tested, if we are to take Eslapions' word.
Furthermore these wall warts being loose plugged into an generic extension cord inside a plastic closure with no fusing
Were any C64 power supplies fused? Most that I've seen in North America were sealed shut with epoxy and had no fuses. The European ones may have, though.
I agree the end product LOOKS crap from an aesthetic standpoint, and I'm not sure I agree with the price charged, but I'm also not convinced it is an inherently faulty design. After all, essentially what's inside a C64 power supply are a couple of transformers like this, but in a more unified looking case.
Also, what is the point of linking to this discussion on comp.sys.cbm, Lemon64 and elsewhere? To create a witch-hunt? Again, I'm not taking sides: I vouched for Dragos' credibility here when you guys were jumping all over him as an Ebay scammer, but now I see the same thing happening again. I don't know either of the guys very well, but I think we must remain objective. I see a lot of questionable opinions on electronics being bandied about and taken as fact (I'm probably guilty of this).
If the power supply did fail, maybe this could be worked out more rationally with a refund / replacement, etc.