This just came to my attention and yes, it's a fairly new wrinkle to the PalmOne story.
Looks like they are not replacing such at the moment. It's likely you didn't have yours in a spiffy protector?
I've bought a Zire72 here in Israel from a local reseller "Harel Computers".
My Palm started to get it's Blue Cover pilled off.
I've opened a call at that reseller who said that PalmOne know about it and will not replace such Palm.
After a month that my palm was on the shelf at that reseller (when their SLA is 10days) I've got a new one back from them.
I've probably made a mistake by buying this Palm and not T3 ! ;-(