I agree, something about what that dealership is telling you doesn't seem kosher. How old (in months since purchase) is your bike, and how many miles do you have? I assume you are still covered under the 2 year factory warrantee, and there is absolutely no deductible. I also don't buy the BS about the axle, and I'm wondering about the tire as well. If the rubber is checking or cracking, that's something the tire company should take care of on a less than two year old bike. Folks from your neck of the woods don't usually wear out front tires in less than two years, since the riding season is fairly short, but maybe you ride constantly for those months when the snow has melted?
Need some more facts on this one.
Jerry