Everyone 'tries to maximize profit.' John doesn't try to keep his prices low out of the goodness of his heart; he does so because having lower prices means he gets more sales than his competition, which translates to more money. You should be suspicious of any salesman who tries to convince you he "isn't in it for the money" (which, amazingly enough, John has claimed in this thread).
As for the prices he posted, keep in mind that he hadn't posted these in advance, which means they were not finalized. Now that he won't be carrying the product, and doesn't have to worry about profit margins, he can post the lowest prices he came up with, rather than the most realistic ones. Unfortunately, now that he has done this, other people will look like they have "inflated prices" whether they do or not.
Even if things went exactly as John claims, the professional way to have handled it would have been to apologize that he wouldn't be bringing them in, with some vague description of "things not working out with the supplier." There was no need to paint a picture of his competition and supplier conspiring to have "inflated prices," while he, the better business man, wouldn't go along with it. His presentation of events was, at best, selective and self-serving.
Whatever experiences you've had with him in the past--and I'm sure he's a great distributor to deal with--my following of the Grand Power threads has left me disappointed in his unprofessional handling of this situation.