My son dropped his face down on the cement garage floor. Obviously shattered I called Apple and they told me it was $269 for a "swap" for another unit. Couldn't see paying $269 when the iPad 3 is due out in weeks. Last year they gave me a new iPhone 4 when I jumped into the pool with mine in my pocket, so I wasn't at all unhappy with the fact that they didn't replace iPad for free. After all, the damage was not their fault. They have always been super great when I called Applecare for anything at all.
I decided to use a place on Ebay that repairs them and resends them out for $89.00. I could have bought the screen for $69 and did it myself, but I figure the extra $20 was worth having someone else break it by accident.
When i get it back I'll post my review of the service. It is in NY City, so it is close to me here in Pa.