Quick update guys. I went to the Apple store in Sweden.
Basically, they said that the bump on the corned actually makes the removal and repositioning of the screen very difficult. They said that the bump had actually pushed the screen up, and that if they opened up the phone, there was a good chance that the glass would come away from the digitiser, meaning that the screen would have to be replaced too. I reminded them that on some occasions, when a screen has a single crack, it still falls within the warranty, but they said that "could be due to excessive tension during manufacture."
Before we really started talking, I also told one of the geniuses about my poor battery life, and after running a little diagnostic, he confirmed that was faulty too.
Essentially, 2 separate geniuses confirmed that the warranty was voided, and the manager of the store said the same thing. This whole discussion lasted about an hour and a half, and I was pretty nice and courteous all the way through and just told them I felt "let down" as the iPhone, with it's faulty home button and bad battery was clearly not fit for when it was sold.
They all offered to replace the iPhone for SEK2229 (about $350) but I turned that down, flat.
Finally, the manager made me a good offer. He offered to replace my 32gb iPhone 5 for the same model, if I purchased a year's applecare for SEK650 (about $100.) This was the best I was going to get and I was happy with the deal, so I accepted. I figured the extra piece of mind with the Applecare made the deal worthwhile.
All round, a good (but long) experience.