If you pay Apple to repair a cracked iPod Touch 4g is it true they just replace it with a refurbished one?

I have a refurbished 8GB iPod Touch 4G that I bought December 2012. There's a crack on the bottom that goes across the home button, but if I have a good case on it doesn't show.. There's some small cracks on the screen. I can't touch anything on the bottom right corner such as the history and the tabs on Safari. I can get around this, but it's not very convenient. Apple charges $99 to fix the screen for an iPod Touch 4g right? I was thought about going to some third party, but decided against that idea. And I'm not going to try to fix it myself. I read that they just give you a refursbished iPod is this true? Would it be worth it to pay $99 for them to fix the screen? Because I'm thinking about saving my money for the next iPod Touch whenever it comes outs.

The $99 exchaxge price is for an 8, 16 or 32 GB 4G. It is $199 for the 64 GB 4G.
They exchange it, not fix yours

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