Those indicators are a real problem because they assume that if they have turned then the device has been drowned in liquid but in some cases their devices have been left around moisture,like a steamy bathroom while listening to music and trying to sing in the shower. There should be another way for the reps to check out a device to be sure it was actually water damage and not something else.
Leaving your device in a high moisture environment such as a steamy bathroom DOES cause moisture damage, so if the indicator turns in that case; it's just doing its job. Just because nothing is obviously wrong doesn't mean the exposure to moisture isn't silently doing damage.
There are devices meant for listening to music while singing in the shower, a Droid is not one of them.
