I actually spent quite a bit of time last night looking this up because I thought I had read about this happening. To be honest, I can't find anything. I have found some posts, such as this one, where canonical errors were picked up and adversely affected a site's results. But I can't find a specific example of a site that copied something like manufacturer descriptions and referenced the original source in a canonical tag, then being deindexed. Perhaps I mispoke.
That said, you're right, things are pretty confusing sometimes. A lot of people are in positions like Paul and rewriting product pages to be entirely unique is very costly. If I were Paul, I'd eat the costs of hiring a copywriter to push out new product descriptions rather than take a chance with the algorithm. It would be painful, but if e-commerce revenue is a significant portion of his business it might be worth it in the long run.