Man, lets not get greedy. It's nice that they offered you something and it's worth good money. Applecare is awesome. Mobileme is worth $99, a case $30-50??? That's worth it for me to go in and exchange it. Just make sure you get a good one when you go in.
Completely agree here. The OP seems to not be that greedy though luckily, haha.
Honestly, if they have phones ready to exchange to him, and he's gotten free AppleCare and could get a free year of MobileMe, that $170 for his troubles. And if he waited 9 hours, although that's obviously quite an annoyingly long time, it's still being compensated almost $20 an hour.
Hell, I would put up with that if I got the same thing, haha.