How good the deal is or isn't would seem to depend on the nature of the "upgrade". If you're just going in with your PocketBook 360 and saying "Yo, I know what eReaders are, gimme my Nook", well...ok. If they actually expect you to drop the thing off at the Customer Service Desk, then it's a rip-off in the extreme.
One presumes that the scenario is the former, not the latter. And yet, if that's the case, it's almost MORE insulting -- almost anyone with an eReader and plugged into the eBook scene already will know that those books aren't work $300 and that SD card isn't worth more than $10.
