I have had my 500 for 15 months now and in that time it has fallen short distances (with the cover on!) and has survived being packed for travel in suitcase and backpack and is still working fine.
Yes, you have to be somewhat careful of it, just as you should be with all your electronic devices, but I find I don't have to be overly careful with it to the point where I'm afraid to use it.
I handle it just as I do my notebook computers and even though I've owned three different notebooks in my life so far, none have had to be replaced because of damage I did to them. They just got old.
So my advice is to get over the nervousness about the screen and enjoy the reader -- not a day goes by where I haven't spent about an hour or so reading on it and it would be hard to imagine life without it.
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