Durb wrote:
The siding reacted (or rubbed) with the staples underneath and created a bunch of pin holes in the siding.
I've had this happen in a few spots. It's really easy to fix and a none issue. Just like anything, you have to keep up with maintenance, if you ignore it, like your neighbor as it's very easy to spot, you will get holes. If the corrosion continues after you repair it once, pull the siding back and pull the staple.
Or if you do get a small hole, it's an easy fix as well with the right caulking and/or paint to make it blend in without notice. I've seen this done several time on pop up camper roofs.
I had my dealer fix this when I was having the camper pressure leak tested and re-caulked.