Is it just me but I don't think we are talking to a newbie in this case. He has been heating his home with split wood for 2 yrs. Surely he not failed to sharpen a chain in 2 yrs or at least recognize a dull one. Something is amiss here. I don't think even an "incompetent" dealer could fail to recognize a chain in that shape.
I've known guys doin this for fifteen years that still can't sharpen a chain worth a dam. There's the guy with fifteen years experience, and the guy with one year of experience fifteen times over. The fact that the op posts a pic of a chain like that and is still wondering why his bar is smoking and blaming it on the dealer says it all for me.