GP, I'm not 100% sure, but I'll bet you would've had different results had your son sent them in rather than you, that is, if he was the original owner. Leica's warranty infomration specifically states they'll only cover the original owner, which has always griped me. You'd think that for $1000.00, they'd be willing to make things right for anyone that owns them.
"Grey market" binoculars are those imported without paying all the tariffs, etc. They're generally made in the same factory and are identical to "USA" warrantied glass in every aspect but the warranty, and are usually sold by people who are not authorized dealers at a discounted rate to the consumer. It's always a good idea to check for "grey market" goods when purchasing any binocular, especially online. Otherwise, you might not have any warranty coverage. Leica covers "grey market" goods for 30 years instead of lifetime, and as of late, Swarovski doesn't warranty any "grey market" glass. One other thing about "grey market" Leicas is that they have to be sent to Germany for any repairs, and the owner is responsible for shipping both ways. "USA" warrantied Leicas go back east somewhere.
Leica "USA" warrantied binoculars have a lifetime "no fault" warranty (only good for the original owner), which states even if you damage them, gather up enough pieces that the serial number is included and return them along with $35.00 for return postage, and they'll either be repaired or replaced without question.
Anyway, sorry to hear you had a bad experience with Leica. I owned a Leica 10x42 BN for a short time, and while I loved the glass, the ergonomics just didn't fit me, so they were sold.
Greenside, I might get slammed for this, but I could never personally recommend Steiner binoculars. They might be serviceable, but in my opinion, there are much better binoculars available for a lot less money. My experience with Steiners has not been all that great. My cousin had a pair of 8x30 Military/Marines that would make the captain of the Titanic sea sick to look through them, and my brother in law had a pair of Predators that required they be returned to the factory twice because the internals came loose.