I agree with you on this. Almost every MS-70 coin they grade is anything but. Anyone who has more than a very basic understanding of grading could grade coins better than SGS. Sad but true. SGS though does give very fast service and communication. I've dealt with them directly over Ebay and was pleased, the only thing is their coins are not graded correctly (at least to my standards).
The particular seller the OP referenced has a few SGS slabs thrown in with his overpriced raw coins. He has a bunch of low grade melt value Peace/Morgan dollars with BIN's of $60+; I shake my head in amazement that he can sell any of these at the prices he's listing them for: http://www.ebay.com/sch/Coins-US-/253/m.html?item=320269407944&_ssn=stevesgiftshoppe
like this one http://www.ebay.com/itm/1967-SMS-Gem-Heavy-Cameo-Kennedy-Jet-BLK-MIRROR-THIKCAM-/390292386204
I meant to say "lincoln wheat cent" but that's cool, Ididn't know a 70 got a 70 But seriously, he has six ms70 coins for sale and I didn't even bother searching the rest of his stuff beyond the first page. I would like to see that companies written grading description.
Checked this coin out… in 2006 this coin sold for $15,120 on teletrade. It indeed was downgraded. PCGS value is now at $85. Im guessing someone was a little upset? or does PCGS step in somehow and refund him due to the price difference. I could definitely see them doing this to protect their reputation.