It sounds to me like maybe your LL was built from a blank, and they replaced it with a factory rod. Or, maybe you weren't the original owner . . . ? Technically, the warranty only applies to the original owner.
I had a similar occurrence with Loomis. My first premium rod was a Loomix IMX, built on a blank. I broke it a couple of years after the IMX was discontinued. Loomis wasn't able to provide me a blank, so what they offered was a replacement factory rod. But, I had to pay different amounts (say $100 to go to a Trilogy, $200 to upgrade to a GLX) to get the factory rod. I thought it was fair.
By the way, I sent a St. Croix in last fall, and it wasn't $7.50 to get it fixed. It's $15 or $20.
I believe the uncondiitional (knucklehead) warranty is really pretty silly. While I appreciate being the beneficiary of the unconditional warranties, to the extent I have Sage, Redington, Orvis, Powell, etc., it's really not a very practical business decision (if not all of the other rod guys were doing it, and the rod manufacturer's have to keep up with the Jones's). Think about it. Why should the rod company be responsible for replacing or fixing something that is broken for a reason not related to their product? If my Lab decides to chew up the cork, hey, that's not Sage's fault, and I don't think they should feel obligated to fix it for nothing. But, Orvis wasn't selling any rods in the early 90's, and to get back on track it need a gimmick, so it started that unconditional 25 year warranty, for the life of the rod owner. Everyone else then followed suit.