Eventually reputable vendors began to pop up. I recall doing a great deal of business (>$1m) with a company called "Network Hardware Resale". They're still in business as "Curvature" and I believe still moving second hand network and server gear as well as providing support.
There have been times that I recall when lead times for Cisco gear have exceeded 8 weeks, when I didn't have any other options other than using refurbished gear.
From my perspective, Cisco is nothing more than a company looking to extract as much money as possible out of Enterprise IT shops. They pretty much gave up the service provider market. IOS has gone a million different directions, and they've been slow to embrace IAC.
Back when I was buying refurb gear, I was also buying some new and some officially re-marketed gear. I'd get support for the chassis and supervisor modules (Cat 6500) so that I could get reliable software updates.
My sales rep's regional manager sent a threatening letter to the VP of my department with some dire warning about how we were in violation of the law or some such. We all ended up in a meeting in which they produced a list of serial numbers of gear that we'd sought support on that were supposedly grey-market. We produced the same list of serial numbers on invoices for legit Cisco certified re-marketed equipment. They'd just failed at record-keeping. My VP was livid and threw them out of his office. Pretty sure they got fired after.
Anyway, this is all just a tactic to extract the most money possible. It'd be irrational to choose Cisco for any new network deployment these days.