The other downside is that there's potential for regular re-sellers to drop the software, why put out the effort if it can be had for 1/3 the price elsewhere?

And overstock from where? I don't get it unless another re-seller went bankrupt or something and had this on their hands. Or SFT is dumping because they're no longer going to support the products? But that doesn't make sense either.

I can't imagine how this came to be, doesn't SFT offer some kind of refund for unsold items? Why should there be any unsold items anyway, it's software, it's not like there's a sell-by date. It doesn't seem good for anyone except the occasional buyer, the company doesn't make anything and regular channel partners can't compete and are going to be unhappy campers.

I might guess that they're bootleg, that would make sense. Please post if the validation codes are accepted.