Yup, totally agree: I could've walked away, dealers are in business to make a buck, etc., etc.

All I'm saying is that if you're looking to build business (through future sales, through referrals, through the service dept, etc.), and not just make a single sale you need to bring more to the table. I know that as a buyer for this car my negotiating hand is weak and paying MSRP no questions asked is recognition of that. Meeting the buyer half way or accomodating their concerns builds trust that will reap the dealer benefits over the long term.

In essence the dealer chose to trade my referrals and possible future business for an extra $300 (I offered to split the difference on the optional package). I made a choice to buy the car, they made a choice, too.