OK, called back to Dish and was escalated to a more senior tech support rep and, after she tried her best to get them to upgrade to Hopper, she agreed to ship out a replacement VIP722k DVR for a $15 shipping charge. But I did get her to credit a week of free service for the disruption. They don't even want the old 722 with the busted hard drive sent back to them, so I guess it's going into the landfill.
This will keep them with Dish, contract-free, for at least a little while longer. I know that there will be some new streaming TV services coming out from DirecTV and T-Mobile in the next few months and one of those might be a good option for them longer-term.