again, I don't think the original OP was saying people that pick up restored machines for their store or people that pick up poor condition machines and restore them to sell are the problem. meh, I'm draining this thread, far too many people that can't seem to read through the posts before casting aspersions
edit: posted before Vids comments are up, vid I agree. I'd pay a premium for a game if the dealer is reputable and there was something inherent to the value of the machine (ie warranty, restoration work ect ect)
the OP mentioned a few times that the machines were not in top working order. again, only taking his word for it (then again why post here at all if he didn't feel compelled?) but that doesn't feel like a reputable dealer that's providing a service for that additional cost. Then again to use the car analogy there's always used car dealers that buy the beat up used insurance cars that are written off, they do the bare minimum and charge a premium for them in the hopes that their customers don't notice. (Carfax has really helped with this over the years) so this isn't new. Though I'm still puzzled why anyone would defend any dealer that would offer shoddy products at a premium. How is that helping anyone in the hobby?
Personally if I knew someone was looking for a machine, I'd steer them clear of that type of person and put the word out for them then offer them to check out sites like this to get a better idea of what their getting into and make a better decision (I'd do the same thing if someone was going to purchase a hot rod or muscle car)