Let's address the return to MFG AND factory ammo issue. You NEVER KNOW just what the "smith" did or didn't do when they "did" your returns...mostly they do the least possible...nor do you know what brand of ammo, IF they actually fire the rifle, that they used.
Factory ammo is loaded to a specific set of parameters which may or may not match the chamber parameters of YOUR shooter...Most of the FTF problems with the 35 Whelen are with the length of the chamber...the Handi chambers seem to be cut long, on the high end of SAMMI specs which means that if the cartridge maker sets there parameters on the short side the resulting difference can be from 0.010" to well over 0.025". NO short factory ammo will fire off in a overly long chamber except occasionally, under those conditions, and that is due to the tolerance limits set along with all the other parameters of the factory ammo.
This is NOT a fault of Handi except that they might have picked the LONG end of the tolerance spectrum, NOR the fault of the ammo maker except they ight have picked the SHORT end of the spectrum and the resulting differences is causing all the fuss. Factory ammo is supposed to fire in ANY SAAMI chamber and ALL chambers are supposed to be within SAAMI specs...BUT...we all know that ain' the real story.
There is also the issue of a cheap, quickly made, rifle that uses a work force trained in specific actions where personal initiative "might" be frowned on...not saying it is, but anyone who has worked on a production line will know what I'm talking about.
The fixes are simple and "usually" work very well...I can see your point, tho'...if you can't or don't want to deal with the issue, or fiddle with it a bit and couldn't get it to work right, then getting rid of the shooter is your best choice.
ANYONE and EVERYONE should invest in a set of Hornady OAL and HEADSPACE guages. Having the set and taking a few minutes to measure the shoulder length on several brands of 35 Whelen ammo AND on a fired case would have settled the issue quickly.
FTF's are an issue with break action rifles including T/C Contender and Encores and the solutions have been know since all three shooters have been around.
Who knows FOR SURE WHY the 35 Whelen was taken off the marker...QC could have been the reason, lack of sales coupled with the FTF problem could have been the reason...problems with the company, the work force, lack of interest and the pending sale all could be contributing factors.
The chance of a long chamber is inherent in the Handi AND T/C and the only way to factory fix it is to swap in a new barrel...I'm guessing that is the last thing on the list of corrections at the Handi repair group.
The Handi has such a simple ignition mechanism that there shouldn't be any problems that can't be fixed quickly, but because of the way the hammer gets it's power and the fact that it only takes a little bit of interference or reduction of the spring power to cause a FTF AND the fact that people want a nice light trigger pull which REALLY screws up the hammer spring pressue, it's a wonder there aren't MORE FTF's.
I really wish
someone with a factory 35 Whelen that WORKS and one that has FTF's, would measure the shoulders on the brand of factory ammo and a fired case and post the information...maybe go to a Sporting goods store and measure several brands and post that information. This might go a long way to understanding what the H*** is going on and why so those without a lot of reloading expertice would start to understand. I've already checked all the sporting goods stores in my area and NO ONE carries 35 Whelen or I would do the measuring myself.
Anyone that is having problems could just drop a loaded round into the chamber, (with the barrel removed from the receiver for safety) pusth the round into the chamber as far as it will go and use a straight edge across the chamber and see if there is any light under the straight edge or use a feeler gauge to measure the gap. That would tell you real quick if the chamber is too long and how much.
I have 4 Savage receivers, 2 LA and 2 SA, an I don't know HOW many barrels I've cut...I've been playing with the savage since the mid 60", a heck of a long time before they got to be "popular". There isn't any comparison between the Handi and the Savage because you can set the Savage headspace to ANY spec you want and if your smart you will set it to the ammo you are using, the dies you are using and if the bolt won't close it is a simple matter to back the barrel out a tad so it WILL fit. You can't do that with the Handi.
I have onel stub barreled SB2 receiver with one 6mmBR barrel made from the middle section of a previous 6mm-284 Douglas barrel and a Ruger SS 223 barrel that will end up a 222 Rem Mag, the reamer should be here today, and I will be doing a 6.5 BR or 260 Rem stub barrel within the next couple months AND I might even do a 35 Whelen just to put this whole fiasco in perspective.
If I could get my hands on a 35 Whelen barrel that is causing problems, a fired case and a factory case with the bullet pulled I would be very willing to see what I could do, or at least find out if the problem is in the barrel...I won't touch someone elses receiver. Wonder if that offer just put me in the pickle jar?
The only FTF's I've had with Handi's were cause by slightly long chambers and slow hammer fall caused by me not holding the trigger back all the way, interference with a scope or something causing the hammer to slow down internally...all simple fixes. Oh, Yeah, one case with a deeper than normal primer pocket, but that was only ONE cartridge case.
The solution to this dilemma lies in the hands of the users and what their perspective is and how much fiddling they are willing to do to solve it...in a step by step, rational, progressive way.
Luck