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I've had the same issues
I picked up an Aura H2O last year to replace my dying Nook Glowlight. While it was noticeably heavier than the Glowlight and would freeze sporadically (very frustrating), I was quite pleased with how it handled shelving and the fact it worked properly with Calibre.
However, despite the fact I didn't drop it and kept it in a sleep cover, one day it had these strange lines on the screen (this despite the fact it had been perfect just 2 hours earlier). Kobo's response was that the screen was damaged by physical abuse and they would do nothing.
This response really torqued me but I liked the device enough that I would have accepted it if they offered some service to replace the screen, even if I had to pay for it. If I could find a source for the screen, I'd attempt it myself but Kobo won't offer a service to repair the device (even if you're willing to pay for it) much less a contact point for spare parts. I'm left with the conclusion that they designed a device with a (deliberately?) fragile screen and WANT you to just replace the whole device.
It seems like sourcing the screen and offering a repair service could be a small burgeoning business if this is how Kobo builds their products and treats customers.
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