If the old hardware never mines enough to cover its initial costs, how are they going to afford to buy new hardware to replace it with without charging existing customers more? Do they use money from new customers to pay out the older customers? "Never obsolete" isn't possible in Bitcoin mining, not without spending a whole lot of money to keep replacing old hardware with new.
As seedtrue mentioned above they purchased 5 PH/s from Bitmain and posted pictures of S4/S3 miners in their warehouse but that was 2-3 months after they started selling hashlets. Not to mention that most hashlets are marketed as "Scrypt" miners, not SHA256. They have never posted a mining address that would link them to mined blocks, Scrypt or SHA256. There is very little information about what was going on with customer funds in those 2-3 months. Hashlets were initially claimed to be "proprietary hardware", that claim seems to have been removed now. Also GAW sold preorders for Scrypt hardware ("Vaultbreaker" - see
http://bringbackroi.com/ ) back in June-July and didn't ship it, instead offered to convert to hashlets. Lots and lots of red flags like that.
They should stop using that line. It makes them look dumb.
I understand that there's power in using hyperbole in advertising to get more business. But for something like Bitcoin mining where presumably your target market is tech savvy, doesn't this just turn people off?
This is not the only one and probably not the most egregious one. But GAW have stated that they are not going after the "tech savvy", they are trying to bring "new people" into crypto.