I have had mine for sevaral years now and have close to 20,000 rounds through it. I shoot the crap out of it and I am very happy with it. I have not had any problems with mine. I broke it in with CCI MiniMags for the first few hundred rounds, not sure if it was necessary or not, but it eats anything I feed it. I just put 500 rounds of Federal bulk pack through it today with no malfunctions.
I bought one of the early original German P22's & my experience with it is identical to yours John, well except mine has surpassed the 100k round mark, it was a project for the rimfirecentral.com forums so I really put the little pistol through it's paces to see if I could break it.
It is not purty anymore but it still runs great, even with el-cheapo bulk pack ammunition, so I think that I got my $250 worth out of it, especially since it's the one everyone argues over who gets to shoot it first, when it comes out of the range bag.