for butterfly, who asked: "does that even out the thin places and get rid of the fold lines as well? does the batt stick to itself? i'm trying to picture what happens to it. does it fluff? do the towels get full of lint? "
i have never been willing to pay the price for the warm& products, so cannot answer about that specific batting. i could be wrong, but i don't think the dryer dance with damp towels will redistribute the lumpy bits. the whole point is just to remove the wrinkles - the worst of which create lumps that go away with the wrinkles.
based on your description, and on the number of people here who think the warm&whatever batting products are great, it sounds to me as though you got a cut from a defective role. it also sounds as though the customer service rep you talked to should be flippin' burgers somewhere instead. the only correct response to your call would have been "what's your address so we can send you a replacement"!