Hi Shaun
It sounds like a load of codswallop to me. But I've never walloped a cod. And I'm not a mechanic, so what would I know?
I'm only an engineer (mechanical/electrical).
Your electrical wholesaler may be correct in saying that electrical current won't pass through a LED, but only if the LED is wired in reverse polarity. LEDs are diodes (that's the D bit in L.E.D). They're like non-return valves. Electricity will only flow one way. If they're connected arse-about, nothing will happen. It's like not being connected at all.
In very general terms, it may be helpful to use the flow of water in pipes as an analogy to electricity, with the following equivalents:
Voltage = pressure
Current = flow rate
Resistance = flow friction
Capacitance = reservoir storage, but let's not worry about that.
Fuses blow when there is too much current. They simply overheat and melt.
If there's a blockage in the system somewhere, whether it be a diode (including LED) or a switch in the off position, no current can flow. Pressure (or voltage) can't build up any more than is available from the battery. Nothing is going to blow up.
If the current never got to the fuse, how could it blow? If you had blown fuses, it wasn't the LEDs that caused it. You probably fucked up the wiring somehow.
Cheers,
Cam