What you are describing is fraud. It's illegal and a felony. It's the same as driving your car into the bay to get insurance money. Besides those disincentives to behave like you're describing, if you love Apple's products why would you hurt them financially to scam new units off of them?
Sell your ipad 3 if you want a new one. Resell values are good...I just sold a mint iPad 3 on Amazon and it lost under $100 in value. Use that money to go toward the new unit. You will have gotten a new iPad for only a tiny bit more, and you won't have committed felony fraud. It's a win-win for you, Apple...basically everyone.
Is this guy serious? I bought AppleCare which includes up to 2 replacements as part of the package. My daughter already dropped and chipped the corner of the iPad so I'll be replacing it anyway. But if I got a 4 instead, what does that concern you? It would be a testament to Apple's customer service and only continue me being a faithful customer. I've bought an iPhone 5, iPhone 4S, iPad 3, and iPod touch within the past 6 months. And yes, my iPhone 5 was chipped upon opening and I kept it unlike most on this forum.
I do not consider AppleCare in the same league as car or house insurance even if you do.
And if you read my original post, I never intended to do this fraudulently. My iPad is chipped and the glass pieces are broken off. I didn't state it but don't judge or assume to know me. I'll refrain from making any blind assumptions about you.