Casing around plug is broken

I am very gentle with phones, never even scratching them. I bought this Hero in October, the week they came out. Sadly about two weeks ago I noticed the band that goes around the entire casing is broken. I have Total Equipment Protection, but... since it is physical, I still have to pay $100 for the phone (granted, better than $500). Frustrating...it is enough to slowly snag clothing and even my hands. I would have expected better quality. First phone in 8 years that needed any kind of repair.

Now i wonder if I should wait two months for the Hero 2, with 2.1 OS.

I'm returning a Hero to Sprint and I noticed that the casing on one side of the usb plug is broken. I never noticed it before. The difference here is that I cannot say that I have treated my phone kindly. I beat the hell out of it.