Wow those pictures are very discouraging, but I'm happy to hear how responsive Oberon Design has been about the problem. Sounds like not only are they willing to fix it, but they really want it to be right.
Of course had a QC person just done more than a cursory look at your cover before letting it ship then all of this could have been avoided.
This is all of particular interest to me because just yesterday I ordered one of the extra large classic journals (Waterfall in Saddle color) for my wife's birthday. I've been planning on later ordering a cover for my 505 as well. Hopefully all this is resolved and I'm not left doubting whether I should go for it or not.