Well I guess my situation wasn't so unique after all. The nano is my second iPod, my first was the iPod Shuffle. I think Apple makes great products and I am sure that they have resolved my issue.
I had the exact same problem with the LCD screen and I never droped my iPod nano. I called today to check on the status of the repair/replacement and the Apple Care person said it will be shipped on the 28 of Sept. So I guess it is well on its way to my crib. I hope that I never have to send it back for either the same problem or a new one.
To all the nay sayers, the iPod nano is still the best mp3 player out there. And to top that, the Apple support team was more than helpful in resolving my problem. I guess I will know for sure when it arrives.