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I too have dropped my Reader -- from ~5-1/2' onto cement. No damage to the Reader, a little to the stock cover. I ordered the Pouch for it the next week.
Like the good doctor I do not buy warranties.
As for the unit being overbuilt, yes, I believe it is by commercial electronics standards. Given that the original units were built in small numbers (for a Sony product) it was easier to over engineer than it would have been to field complaints that the product broke a lot. I would expect future versions to offer more plastic and less metal.
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