Absolutely. And the way that SSAV explained it to me is that the unit has never been registered and Naim allows this to happen if the seller is an authorised Naim retailer. Either way, if the item is used as ex-demo and not registered with Naim then Naim would have a hard time to prove the item is new or not and even if they could it would be difficult to establish how long the item was used as demo for.
When i registered my Nova with Naim that went fine and I did not get a notification to say that I could not get the extended warranty. 
And I dont understand why the extended warranty is not transferrable?? A warranty is offered by the manufacturer to guarantee you as a buyer that if the product malfunctions within the first 5 years (in this case) then they would put it right (either at no cost or very little cost). Therefore it should not matter if this product has been owned by 1 or 5 people as long as they can produce the original invoice showing the age of the product.
The price reduction would come out of the retailers pocket wouldnt it? And, people do not expect 5 year warranty. If a retailer tells me that I get 5 year warranty when I buy the ex-demo product then that is not my fault.
Does this logic extend to when buying an open box product? I buy a product and within 14 days I dont like it and return it. The store then sells it at a reduced price as an open box product. Does this invalidate the extended warranty?