I half agree with you on Walmart's strong-arm approach, but I have no problem with returns going back to the original supplier. If an item was faulty, it was the supplier who more than likely is responsible. I bought it from Walmart, so Walmart takes it back. Walmart bought it from X, so X takes it back. Responsibility finds it's proper place.

It's much better than those places that sell you a piece of junk and then tell you that you need to pack it up yourself and send it to China, on your dime, for repairs.