Another "I broke my Kindle in bed" story. Falling asleep with a good book is more dangerous than it used to be.
I'm so sorry about your broken Kindle. Give Amazon a call. They seem to be cutting down on the "free replacements for any reason" but they might give you a nice discount on a replacement. It can't hurt to try. They don't seem to care too much about the screensaver thing - you wouldn't be the first to send one back with the evidence permanently frozen on the screen, and I don't think there's been any reports of Amazon changing their mind about the replacement after seeing it.