wetchicken, another professional installer (north of boston) chiming in here.
--Most of the cost of the remote starter is in the labor.
Many remote starters offer such extra features as starter kill, anti-grind, keyless entry, trunk release, panic, turing on the domelight when you unlock, and so forth.
It is reasonable that you would not get those features as part of a basic, entry-priced install, even though the remote starter itself may be capable of doing those things.
However, if the dealer is smart enough, he's going to offer you those features, at an extra cost. I upsell customers all the time----I get more money of course, and they are happier with their car.
While it is hard, especially when a store is busy, so take the time to explain each and every feature to each and every customer------a retailer is throwing money away if they don't at least offer you something that would make your car work better.
--The LED is for the installer to use during programming, and also serves to warn people that your starter kill is activated (or possibly fool them into thinking you have an alarm).
--The momentary switch is for programming features, adding replacement remotes, and also for you to defeat the starter kill if the remote should be lost or broken.
--Typically, if there is no starter kill installed, the LED and switch would not get mounted------they confuse the average customer, and many people don't want holes drilled in their new car.
However, I do zip-tie the programming switch in an inconspicuous, but easy-to-access location like the fusebox. Makes it far easier for the times when I have to re-program something for a customer, or replace his remote------obviously I don't want to have to take the car apart twice.
--About the Subaru dealer's comment:
Many car dealers know a lot less about automotive electronics than they care to admit, they often get confused when cars some in with complex electrical issues, and many times they react by just arbitarily blaming any aftermarket accessory they can find.
On the other hand, there definitely are poor installations that do cause problems.
But if the system is installed properly by a skilled installer, there is no reason to have any trouble.
--Anti-grind: Again, this is one of the optional features. But if you are forgetful and are prone to moving the key to the start position even after the engine is running, it is a nice thing.
BOTTOM LINE:
I don't think the shop actually did anything wrong.
But if they took a moment to ask you questions and listen to your answers......... you probably would have opted for some of those extra features...........the shop would have made more money and you would have been satisfied.
WHAT I WOULD HAVE DONE:
While I don't connect all those features on every install for free, I don't like unhappy customers.
As long as you weren't yelling at me or calling me names or anything, I probably would have just connected the features you want, not charged you, apologized for the miscommunication, and sent you on your way, hoping you (or your friends) would be back.
Again, I wouldn't feel obligated to do those things for free.........but I think it would be the smart thing for me to do............. at the retailer I work for, we believe in taking care of people and giving them good customer service. In the long run, I'd rather hand out $50 in free features than have someone leave upset......... but many retailers (in all different kinds of businesses) probably do not see it that way.