I think the problem was why is it on sale there and not anywhere else. With someone at Apple saying that the store is not an authorized seller, then why would you want to buy it from them? If something goes wrong with it, you most likely will not be able to bring it to Apple. Whenever someone is an authorized seller, Apple will still take care of you. However, if you purchased it where it is not supposed to be sold, then tough luck. I see nothing wrong here!
I think that the story here is that this version of the iPad is already obsolete and has been unloaded to discount vendors to clear room for the next model. How long has the first generation been available? Just over 6 months. It makes me sick how companies like Apple have all of these "green" programs when they are the biggest contributors to cradle-to-grave toxic waste. How much higher will their stock price need to go before we die from poison leached from the billions of iPods that rot in landfills?