I went with an "Uncle Mike's" brand holster for my XD-40 on the advice of a friend of mine instead of going with leather. I've had no issues with the holster and use the XD for concealed carry. Can't understand (and sorry to hear) what happened to your pistol though. I have a Ruger Blackhawk that I've kept in the same leather holster for nearly 30 years. Thing is, I don't think I've put over 500 rounds through it in all of those years and it doesn't "get out" much. Thought of using it for concealed carry for oh maybe two or three seconds, 'cause it's kind of hard to conceal something with a 6 1/2 in barrel.
Could the leather have gotten wet somehow and the wet leather rubbing against the steel frame cause your problems? It's a thought . . .