Ok, a senior Apple representative called me to see if my issue was resolved, and after hearing my story, he was appalled.
He apologized profusely, and called me back later to offer me an ipad 2 accessory of my choosing. He suggested a leather smart cover, so that is what I got. I should be receiving it shortly.
All is right with the world, and Apple and I are now friends again!
Oh, and the ipad 2 was worth the hassle
