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IMO, vendor slot recycling is a kludgy workaround to try to make up for lack of true deletion. It's akin to if gnucash didn't allow the deletion of transactions and the proposed remedy was recycling them, leaving bunches of blank transactions marked "***DUMMY***" lingering around. Ludicrously sloppy. Unless the number of vendors is rapidly expanding, recycling leaves faux vendors lingering in the database awaiting re-use at some future date. Sloppy, error prone, and misleading when reports are generated.
I don't see why it is considered so incredibly hard to delete vendors. I can delete transactions. I can delete entire accounts. Why not vendors.
My current solution is to bypass gnucash's vendor capabilities entirely, using expense sub-accounts with the vendor names in them. This way I can create and delete vendors with the click of a mouse. However in exchange I lose all the nice invoice management and pre-built reporting features I would have liked to have been able to use.