Jake, You are right on in your assessment. Poor customer service is rampant in American business. I had a somewhat similar experience I wrote about in my blog; (http://wordofmouthguru.wordpress.com/2008/09/15...) I think the point about classifying customer facing employees as brand managers is a good one that more companies should consider. Great post!
Jake, What a refreshing corporate perspective Graco has about blogging! This seems to be a rare case where the corporate marketers were able to trump the legal beagles. The points you highlighted about their blog demonstrates that Graco is one of the few companies that are about creating and maintaining a relationship with their customers rather than just completing a transaction.
I especially like your observation about their use of Wordpress. As a new member of the blogosphere, this "word of mouth' about Wordpress gives me a sense of relief and comfort that I made the right choice. Great post!