Sherwood's website clearly states that this receiver features "HDMI switching". HDMI switching is exactly what it sounds like it is, switching. For example, you wouldn't assume that because a receiver had composite video switching that it would upconvert composite to component, you would likely assume that it merely switches. Switches are simple, just just select which input signal is going to the output terminal.
However, HDMI repeating infers that audio or other processes occur when HDMI is connected to the receiver. The repeating architecture is not available on that Sherwood receiver, and is not advertised to have it. It is reasonable to assume that someone may have a television that doesn't have more than one or two HDMI inputs (remember we are talking budget equipment for budget minded people). So maybe that person who had a tight budget and couldn't afford the TV with 3+ HDMI inputs would like to connected additional HDMI devices and have surround sound to boot. The Sherwood RD-6513 is a cost effective solution to that kind of user's conundrum. Will the audio be supported over HDMI?, no. However, now the user can connect his/her two or three HDMI sources they where previously unable to connect simultaneously to their television or monitor with the added benefit of a surround capable receiver.
The receiver isn't a hunk o junk, and their description of features is not misleading. You may be a little upset because somehow you feel miffed because you recommended it or are just defensive of your friends. What ever the case may be you blew it out of proportion because you didn't have all the facts together. It's fine that you didn't know what all the terms meant, but it's not fine to bash something you don't understand.
Bandphan has hit it on the head. If I assumed two cars with the same horsepower would have the same max speed and the more expensive one was faster than the one I picked it wouldn't be right for me to make outrageous claims that the one I bought was crap because it didn't go as fast as the other one that cost more. Obviously I woudn't have taken into account numerous facts and technical specifications to make an informed statement regarding the speed of the car being below par for it's price. I don't know much about cars, so I don't make wild accusations about car manufacturers or particular cars being crap, or hunks o junk.
It never hurts to do more than 5 minutes of research before buying something.