i would think that packing and shipping a bass, especially a damaged one, would be more costly and risky in most cases.
i had to have some work done on the board of my wan-bernadel at the time that i purchased it... i played on it in phoenix and loved the instrument, so steve koscica sent it to me where i lived at the time in sacramento to try it out for a little while. there was a buzz in the fingerboard in the lower positions on the g string, just bad enough to be annoying. i tried raising the bridge, but it was still there. turned out it was just an inconsistency in the board, but steve paid for it to be taken care of by my luthier in sacramento. since it was a new instrument, he just agreed to get an estimate for the work and take it off the cost of the bass if i wanted to purchase it (which i did and couldn't be happier about by the way). pretty simple, and kudos to steve for making sure the bass played the way i wanted it to.
this stuff seems to be standard procedure for a lot of guys out there. they know that their reputation and word of mouth is a top factor in their bottom line. lemur has built a major presence in the bass world, primarily on their good reputation and customer service. it really is a shame that they took such a long time to contact you, however, the approach they took afterwards is what i would hope to encounter, and above what i would expect. bass customer - offering to buy a damaged instrument back for it's full retail value is tremendous, and a point that i would have expected you to mention in your original post.
i would suggest you send a better photo to jerry though. if it really was a defect in the wood, a higher resolution photo may make that easier to believe. from what you say, you have nothing to hide.