Thanks for your comments. Unfortunately, the dealer did not offer up doing a quick in-kind exchange, which he probably would have done if possible to salvage the sale. From viewing his online inventory he only has another standard M8 demo in-stock in black and it was more expensive (and I prefer Chrome). The Leica tech said the only option was to return it to Leica and they would do "expedited" repair which would take 2-3 weeks. Normal repair time is 8 weeks.
The dealer seemed surprised the camera didn't work, stating that the demo's are factory tested with the latest firmware, so he does not bother to check them out before shipping. If 2 inspectors missed the problem, that is inexcusable.
I've always bought quality goods where possible, but lately there seems to be increasing shoddiness. For example, a recently purchased BMW motorcycle has had 4 recalls, including one for the hazardous practice of dying unexpectedly in slow corners (talk about a butt-clenching experience!). I've had no problems with Japanese bikes (or cameras for that matter).
Anyway, thanks for letting me vent and express my frustrations.