If I was Axiom, I wouldn't argue and would give you a new cross-over. I wouldn't want to be known in the industry as having speakers that "blow". It's simply not worth arguing over especially since it is a relatively rare occurrence.
However, from what I read before, you have a need that you feel can only be answered by high sound pressure levels. Your Sherwood amp may not be enough for you and as a result, you are driving it to clipping. The harmonic distortion likely isn't a problem for the M100s but given your high power levels, the subsonic signal that is generated from the clipping may not only damage your cross-over but also the woofers. The suspension may be getting distorted and the alignment of your driver may be affected.
