I think it's reasonable for couriers to refuse to ship warranty return lithium batteries of any kind.Looking at couriers... some of them are refusing to transport Lithium batteries citing risk of fire, even though LiFE04 batteries are safer than previous technologies it would impossible for them to discern between different Lithium technologies; so I understand their position. Renogy know this, and that is why they don't want it back.
I wouldn't want a known faulty battery on my airplane/truck/ship either.
The industry does need to sort that out one way or another, rather than just writing off the device and leaving it to the end user to find some way to safely recycle it.