I missed this thread the first time around. It's interesting that this is the only place I hear condemnation of Leupold scopes but used ones seem to sell very well, even on this site!
I've been using them for 40years, I'm sure I've had over 30 of them, from the M8s to the VX3i. I did have one fail as many here have described, it was an older friction adjust model, it was repaired and I'm still using it. I've sent several to Leupold for custom work and for stiff power adjusters on variables(under warranty). It does seem to me that their internal communications are lacking a bit.
I'm very dissapointed with Leupold now and probably won't buy any more new ones, not because of failures but because I feel they've abandoned the target shooter market in favor the "tactical" market, I guess that's where the money is. That and the "temporary" closure of the custom shop a few years ago have put me off, I suspect they'll get by without me.