I don't understand how they are getting you a replacement for only $200. Did you have some protection or insurance? If things turn out differently at the store you can buy a replacement screen or lcd, whichever you need, along with tools to do the repair and full video instructions at a number of places online. A buddy of mine had to do this due to a drop and got the screen and all the tools for under 70 bucks... He then watched a video on youtube that walks you through the process from start to finish. It looked brand new when he was done. Good luck!
I feel your pain! I dropped my iPhone4 out of my vest pocket and down 4 concrete steps it rolled and hit on it's side on every step but was in my Otterbox Defender case that I bought at Best Buy. The case only got a small scuff on a corner but the phone was undamaged. Please walk or run and get this case after you get your replacement iPhone.
I went to the Apple store today and they replaced the iPhone for free, they told me that if something like this ever happens again I will have to pay a $200 replacement fee.
WTF? Where do you live/what Apple store do you go to/What was the employees name?! Sounds like the nicest guy!!