Is your Kobo still under guarantee? If it is, you would expect to get it repaired/replaced free. If not I can't really see that you've been treated badly. The device died on Friday, the next working day would normally be Monday. They sent the form out on the next working day. 2 days later you got their offer.
I agree that if the Kobo is under guarantee, they have given you a very bad deal. So is the guarantee still valid?
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