Follow-up: Resolved!
After an initial spiel at the Genius Bar about how they might not be able to exchange with iPads purchased from 3rd party retailers (albeit a major one in Target), 5 minutes later the Genius came back and said she got the go-ahead from the her supervisor to do an exchange with a brand-new one (they took it off the shelf where new customers go to purchase stuff).
New iPad looked good -- being really picky, it wasn't flawless since there was a very small scratch blemish in the corner of the silver back where the protective plastic covering doesn't cover the back -- but it was a vast improvement over the initial one I got, where the chamfer was actually chipped in two places (not in the pic I posted above) and the depicted scratch extended from those chips.
Glad I was able to exchange it for a new one at the Genius Bar appointment. I also tested some demo smart covers to see if they aligned well, which luckily they did.
🙂