Honestly.. that's unacceptable. I played a 4003S and a 4003W in the local Guitar Center (amazed that they had two Rics at one time, considering how lame this particular store is). the 4003W played flawlessly, and felt like I always imagined these elusive basses were supposed to feel: perfect. The downside was that the output jack was a little loose, and the pickup selector was sketch, kind of like the one you describe getting. On the other hand, the 4003S was perfect, as far as electronics go, but setup was mediocre at best, fret ends were bad enough to gut a fish, and there was buzzing all over the D and G strings. I have played two other S series Rics and they had bad QC issues as well, come to think of it...
The optimal choice would be to order one online and go for the gold, return it if it isn't up to par, etc. But that 4003W... I wish I could have bought it, flaws and all. The amazingness of the instrument made up for the work I was going to have to do. It had great grain on the body, no dead spots, perfect action, and the sound, when it wasn't choppy, was exactly what I wanted. If I didn't know how to fix it, I would have learned for that baby.It came down to the fact that I didn't want to risk losing that perfect feel in order to bypass a little soldering.
TL;DR - Your experience was absolutely unacceptable, and you deserve to have things made right by Musician's Friend. But in my opinion... if you have the skills to fix it, it's something worth overlooking if everything else feels perfect.