It allows companies who don't really want to provide customer service, like Right Stuf and LRG, to pass the buck to another company if your package gets lost or damaged. Oh, and you get to pay for it too.
And the other option is to not pay it and LRG is still on the hook. It made no sense to me. I haven't seen where LRG is going to stop accepting returns for damaged items. If the selling point is "quicker", if anyone cared about speed they wouldn't be buying from LRG in the first place.