So, to round out my experience with PowerOn:
1)We got an e-mail back with the CSR with a serial number (which turned out to be the serial for the iPad 2, which they had already audited). We sent back the serials for the two iPad 3s and again rejected the audit until the matter could be cleared up.
2)The CSR sent us back a list of the audit numbers with items and serials - one of the items was an iPhone 4s belonging to another customer; when they asked us "are you x", we told them that it wasn't us and the phone wasn't submitted by us.
3)We called them and got the CSR who had been replying to e-mails and pointed out to him that they had listed an item which didn't even belong to us. We also inquired about the apparent mixup and about the damage claims.
4)They called us back, claiming that the iPad2 and the second 3 had somehow inexplicably been swapped in the audit process. They blamed FedEx.
5)They still stood by their damage grades, even though we insisted that one of the audits showed damage to the Home button on one unit that did not exist on the device prior to shipping.
6)All in all, they conceded the mistake on the swap and added $60.00 to the estimate on the third iPad, which was more than they offered but still far below the original online estimate.
My thoughts on the matter:
1)Their audit process and documentation appears to be very sloppily handled. If you use them, make sure you have detailed photos (front and back) of your item, and also record all serial numbers.
2)Their grading process appears highly biased toward downgrading offers and is potentially fraudulent.
Their CSR, once on the phone, did make a slight effort to help resolve the issue, but overall, our experience with the recycle program was very unpleasant. We will never use it again, would not recommend using it, and if you do use it, document what you are sending as thoroughly as possible.