I came here to tell you my experience with Apple.
Bought iPad2 3G 32GB 10 days back. 2 days later I got an USD80 leather case with screen protector to go with it.
Just yesterday the screen cracked, last person using it was my 8 year old daughter. After inspecting it, I can see no physical damage anywhere except the screen & weird thing is, it started from a section where the leather case covers over, with no evidence of leather damage.
Today I went to an Apple Authorised Service Provider (Sapura), a nice gentleman attended to me. I told him what had happened & asked how much would it cost me to get this fixed. To my horror he said it would be $XXX amount. It's 75% of the value of a new iPad2 of the same model & capacity. I knew he didn't set this policy. He then gave me a 800 number.
I called (1-800-186-1087) at 1904hrs and explained my situation. The customer care personnel (Carlos) who had a 'Care-less' attitude. I asked if it can be of a part replacement rather than a full unit exchange or the price have any room for improvement. Flat 'NO' was his answer. He didn't even bother to find more options. I noted his un-helpfulness, so I said with that kind of price I can thrash this unit & get a new one, rather then getting an exchange & allow Apple to sell my original unit as a refurbished one. He answered sarcastically 'Your Choice'. Upon hearing that I said 'Thank You' & hung up.
This would be my last Apple product if I can help it. I will also make sure that I will tell my story to all, through every possible mean via mail, forum, twitter, facebook & etc.
Apple won't replace screen, they rather you pay for a full unit.