Basically, he doesn't want to warranty a product that is crap. Nothing wrong with that...however his investment was great and needs to be recouped if you truly want it.
EEPROM chips are about $4 blank individually... I recently bought a reader/burner for $85 and 10 blank 64k chips for $45 and have started reprogramming my car's ECM... I'd hate to sell my custom-tuned chip to someone else only to have them blow up their motor...