Let's break it down:
Statement 1. The minute it failed, it stopped being an amplifier at all! True or false?
Statement 2. It was a waste of $150, which is not a good deal. It broke, probably irreparably by Sony standards (and certainly by home user standards) after being pushed to its limit. No protection circuitry for the PS.
1) It depends on whom you ask, and turns on your qualifier, '
at all'. Aristotle or Aquinas would want to distinguish between act and potency. The amplifier still has the potential to become an actual amplifier, if it can be fixed. From that point of view, it is not an actual, but a potential amplifier. However, it might not be fixable. It might just be a stamped out circuit board that is on a "do not repair list". If so, if that is the case, it no longer possesses even the potential to be an actual amplifier.
2) If Sony sends out a new unit at no cost (shipping or otherwise--which they most likely will not do), it would not necessarily be a waste of dollars. It would certainly be a waste of one's time to go through the motions of finding someone at Sony to help (probably an impossible task), or to have to pay for shipping to get a new one.
On a more serious note, this is one of the problems with what
@amirm is doing. Will Sony even honor a warranty for 'misusing' the product on a test bench? The product support page has the answer:
Sony is not responsible for, and this Limited Warranty does not cover, any damage arising from a failure to operate the product within its intended uses...
So I think the practical answers to your questions are 1) true; and 2) yes.