This ^ is exactly the problem.
The problem is not with the HF's or HD's or Sears' or their products. The problem is with PEOPLE. They want the instant gratification of buying something new in a box RIGHT NOW. If they can't find something on Craigslist with a single search on a single day then it's NOT THERE to them. In fact most people just assume it's not and don't even look.
I have used plenty of HF tools and I own plenty of them right now that get used DAILY in my professional auto repair shop. Some are fine. Others won't take the abuse, and still others are ok with some modifications.
There are items I have bought that I wished I had time to find quality versions of on Craigslist, eBay, etc but due to the demands of a business I was unable to source them quickly enough for my needs. Though major purchases like compressors I never pickup "lightly".
Frankly the problem is that people just don't want to be bothered to slow down and think things through, to wait for the right deal, or to learn something about how to repair someone's cast off. People often ask me how it is that I know so much about so many broad subjects at what they consider to be a relatively young age - my answer is simple - "I desire to know". I would rather something take me a little longer so that I may learn from it than have it done for me. I would rather have the satisfaction of have people ask where I got this or that item in my shop and my reply be "I built that, you can't buy them, and you can't afford to have me build one for you".
I am the anti-consumer. Not because consumption is bad - but because consumers are over-represented in our society and there needs to be people like myself and many members of forums such as this that keep alive the knowledge of the past and share it for the enrichment of us all.
A compressor is a simple thing. Go get some bits and pieces off craigslist and from your local hardware store and ask some questions of myself or the rest of this board. You'll have your compressed air and it will cost less, be more reliable, and you'll get a greater sense of accomplishment from the experience..... Or don't. Really doesn't matter to me since I have more air than I can use.
GD
While I agree with your sentiment, unfortunately those days are over for the majority of consumers. I was raised by my grandparents, and they grew up in a era where most of your everyday tools where designed to be repaired versus tossed in the trash. As you already know, today's manufacturers aren't in the business of providing support or making parts readily available for your average consumer. Again While I agree 100% with your mentality... I also find myself agravated sometimes when dealing with members here, I put that "import tutorial" together for the membership so they could spend the pennies on the dollar fixing there problem versus buying New. In the "end" I think the majority of consumers are more fixated on Cost/Warranty versus feeling "accomplished". Based off the OP's description, I suspect buying from a company who will stand behind there product and warranty is his best route. Maybe look into extended warranty?
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Looks more like operator error to me. If it was common for HF compressors to burst into flames, then HF would not be in business due to all the lawsuits.
The difference is more expensive brands usually will refurbish and resell the product themselves, or crush it so that nobody can make any use of it. They can afford to do that since they charge so much!