I too wondered if there was something more to the story. I know you can't always tell, but they both sounded and looked honest. It was also, from what I can tell, the first time the pair was on a business trip together, at lease they were commenting about their success and that they should do it again. It just didn't sound like they knew one another to collude over something--but heck, stranger things have happened!
What I have read makes sense. I did rent a car when I arrived in LAX--I pulled over and checked the oil--it was fine. I guess the experience made me a little paranoid.

If I saw an engine light go on, I would contact Hertz and let them know. I probably wouldn't do anything with the engine for fear of doing the wrong thing!