I am concerned about hearing of this news regarding DHGate, but feel that there must be some further explanations.
On the whole I have found DHGate to be fairly open and honest with people.
Perhaps it was just the particular user or supplier you ran into. beijing2000 might have been the problem.
It is possible a number of factors enter here. The one I work with, TV, happens to have a feedback score of over 100 and he does not sell refurbished products.
Unless they are openly lying, I feel DHGate is pretty reliable. I mean on the whole they probably send out some defective products, but I'm sure it is in the lower range given they received an award.
I am thankful for your additional view though, and I do hope that it was just a mistake and they are not really like that with people. It is important to know and be educated of and I'm glad they use insurance.