If the bike isn't making him happy then the LBS should do the right thing. He bought it new and shouldn't have to worry about it or do anything himself. It should feel like a new bike. Shouldn't it be under warranty??

Unless of course he crashed on it....*shrugs*

Either way, the LBS should not have told him "you shouldn't take your hands off the handlebar then". He really shouldn't be treating a customer - someone who spent hard earned money in his shop - like that.