While I cant speak for what you are looking at getting, I have had store people tell me that in cases of bankruptcy buyout or manufacturers just clearing inventory at dirt cheap prices it sometimes comes with the conditions of having to be marked as refurbished because its being sold at such discounted prices even though its brand new product. So not all things marked as refurbished are necessarily refurbished.
to be honest, refurbished is significantly better then the alternative you painted...
As for buying a refurb:
1. Are there are a LOT of that specific model up for refurb? it may be a lemon (which means it will quickly fail on you, eventually out of warranty.
2. How much money do you save?
3. What kind of warranty do they offer?
If the warranty is good, the price is good, and there are no unusual failure rates with that specific model, then I see no reason why not to buy it.