Brand new ipod cracked. no damage to case...

So what gives here, I've owned several ipods, starting at the beginning with the 5g, a couple of weeks after they came out.
So my wife buys me a black 60g G5 ipod, engraved, for our anniversary, and I pick it up after having it at work with me for the last 2 days, not being used at all, and the lcd is obviously damaged. I didn't do anything to this ipod. I babied it. I kept it in the sleeve so the ridiculously soft plastic wouldn't get scratched. I kept it there all the time. So how does this happen?
I have applecare. I immediately register it. Then I go to the ipod site to make a service ticket online. I then see that lcd damage is specifically excluded from the warranty, including from applecare.
It's 7:30 mst here, so the apple service line is closed for the evening.
I'm so bummed now, I can't believe it.
Before this gets locked or deleted, I might just mention that I'm a stockholder...
I will call first thing in the morning, my 18 month old will see to that.

Called Apple, they are exchanging it.
I read about a liberal exchange policy regarding G5 iPods, I guess they aren't kidding.
Now i need to look for some BOMBER protection for the replacement.
Well done Apple, except for making this iPod so ridiculously thin.
I'd rather have one as thick as my g4 60g photo iPod and have it be as tough as that one to boot.
The way people use their iPods, they need to be durable to be a portable appliance. I'm glad I have my old 60g iPod photo around to use in day to day activities.
I'm not sure if I can take the new one snowboarding, etc.
All in all a positive experience nonetheless.

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    Not really. Is say "pending"
    pend·ing 
    /ˈpendiNG/
    Adjective 
    Awaiting decision or settlement.
    Preposition
    Until (something) happens or takes place: "they were released on bail pending an appeal".
    Synonyms
    adjective. 
    pendent - undecided - unsettled - outstanding - pendant
    preposition. 
    during - until - till - to

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