I would probably go for the Kobo or the Story HD - we have both devices and they seem to be OK. The Story HD fits into a Kindle case - look on EBay and measure your ereader to check. I bought a "leather" (probably not real!) case designed for a Kindle, very sturdy, fits perfectly and looks most attractive - and at $7 a real bargain!
I would still report the incident to the Consumer Protection agency, they often investigate companies if there are numerous complaints. Often the Australian agents and retailers just think they can fob off problems back to the manufacturer overseas and refuse to take responsibility.