There is no problem with splicing in panels as long as you don't fill the panel with splices. (Not very technical but it's early) As far as replacing the wiring read the link that Bill has up there and you may think differently. To me only options are replace wiring or use the COPALUM repair system. I wouldn't do anything else. I have to trust the CPSC and as they would likely have more info on this application than any of us. Again try to convince them of the hazard, if they can't see it tell them you are not comfortable with a band aid approach and walk away!