So is it standard proceedure for Apple to offer a half price replacement for any damage? Thats good news if true.
As to possible damage, i've decided to go with a super padded sleeve for my Ipad. I will keep it in the sleeve at all times when walking. The Ipad will be almost naked with just a rear hardshell when used, then go right back into the thick sleeve before transporting anywhere. I now see this will be safer than the Leather Folio idea!