All the dealer said about the Baldwin R 227, the crack in the soundboard and the small cracks in the treble bridge, are indeed putting a positive (glass half full) spin on the situation. Kind of like a used car salesperson telling you that the dent in the fender, or the crack in the windshield gives the vehicle character. And, the fact that they refuse to budge on the price seems to be prompting you in different direction.
Regarding what the dealer said about the price, I have seen those later model Baldwin R Art Case models listed for sale at a higher price than the dealer is asking, but I assume they did not have the cracks in the soundboard or bridges; those are not minor defects, even if they are "stable" as the dealer says.
Also, saying that the Baldwin R 227 is already discounted heavily may well have some merit. But unless you really love that Baldwin R 227, everything about it, but the defects, I believe I'd look a little closer at the Yamaha GC1. I know the 100% lifetime trade-up policy seems enticing, but you want a piano you can love now, not something else in the future.
If the Baldwin R 227 was in such an environment, or experienced wide swings in humidity, which could have caused the cracks in the first place, there may well be other defects lurking elsewhere beneath the surface.
I agree with Retsacnal, I would expect further discounts on the Baldwin R, and I certainly would not pay an additional $500 to repair the bridge cracks, which the dealer insists are not an issue.
But the choice is yours! Buy the piano you like the best, and one you will be happy with, whether the Baldwin R, the Yamaha GC1 or other.
Good luck, and keep us informed!