Well, I had an interesting experience at the Apple Store..
After waiting a while to get "serviced" a woman came up and asked what was wrong. I showed her the scratch on the screen and she said she wanted to go take it and look at it in a better light. Then, after an uncomfortably long wait period, she came back and said that although cosmetic damages are not covered under warranty, since my particular scratch is so annoying, they were going to give me a new iPad 2 in a "One Time Exception" deal. They were going to give me a new one right there, but I remembered I had some videos and photos that I wanted to save so they basically gave me an official "IOU," although for some reason I have to make ANOTHER appointment with the Genius Bar (which really SHOULD be serving drinks IMO at that place) for the sole purpose of exchanging it. All I can say is, "Wow, Apple. You REALLY are trying hard to make up for all those past years of anger and resentment I had towards your products, business practices, CEO, public statements, etc etc."
On a side note, I found that yes, even with cosmetic issues they snoop around your iPad. The girl told me, "Even when I was in the Settings section I couldn't get my eye off of the scratch." All I could think when I heard that gem was "Thank GOD I removed all my JB apps beforehand and she didn't look in my Games folder where I hid Cydia." Still, I was a little perturbed that they felt the need to look around my iPad, especially in that section. Overall though, I think I made out pretty damn well.