I agree with Benett and VoR, I'm sorry OP. If you check the other Salient thread, I'm no fan of how the Catalyst was handled, so I'm definitely not on their side.
A lifetime warranty means that during the lifetime of the product, it will be fixed. Generally speaking, if the manufacturer cannot fix the product THEN you would get a new, similarly priced product. However, they will fix your straps. Unless you have a paper copy or email stating "what they conveyed" to you earlier about not paying shipping, that's their policy. You pay shipping, no two ways about it.
As for the holes in the bottom, as Bennett said, those aren't on seams, which would be manufacturer defect. If your MIL is a seamstress, just have her sew it up, and move on if you're not happy with the timeline.