The send in service is a pain and slow, but you can work it to your advantage. I had them return a non-functioning iPod with the claim that it was fine, but it wasn't... so I sent it back.

Just keep sending it back to them until it's right. By the third time you go to send it it, make sure you talk to a person...by that point they "have" to send you a new (equal or better) replacement product. That's how I turned an original Click-Wheel iPod into an iPod photo...

I agree with you on the in-store service - they've been getting more-and-more douchey in my opinion.