A cracked LED is considered damage not just by Dell but by any electronics company and the warranty never covers damage. LEDs are susceptible to shock damage and heat damage. I have insurance on my Streak that covers damage. The warranty covers manufacture defects and nothing else which is par for the course on electronics. If electronics companies included damage protection the phone would cost twice as much at least. 

Sure it may seem like a scam when the sales rep is trying to get you to buy the extra warranties but they can be a life saver as they cover things the manufacture will never cover.

I purchased my Dell Streak on September 17, 2010. I also brought the hard cover case and rubber out-liner for protection.  The phone has never been drop or abused.  I look at my phone yesterday and the corner of the screen is leaking.  I called Dell and they say it is not covered under warranty.  Why even has a warranty? Oh, I forgot if you want a real warranty you have to paid $$ for it.  Seriously, Dell should look up the meaning of warranty.

I guess the assumption is that the customer dropped the phone, but that just didn’t happen.  More likely the screen separated because of a faulty manufacturing process. But do you think Dell would admit that, not in a hundred years.  

I will never by Dell again and I will warn everyone I know and everyone who reads my blogs about this scam.    My Son is beginning college soon and you can be sure I will be Apple products.  

<ADMIN NOTE:Service tag removed per privacy policy>

I too have had this problem, I'd checked my messages & put my streak in my front jean pocket shortly after it buzzed a notification so I took it out of my pocket to the sight of a cracked screen........no force, it hadn't been dropped or abused (I love my Streak mostly), I took it back to the O2 shop where I was accused if dropping (I hadn't) or had abused it in some way "its the only explination" the assistant declared!  I was furious I've seen video of people stabbing the screen to prove its resilliance & yet it cracked in my pocket whilst I was STOOD talking to someone.

I had a happy out come, within 48 hours I had a replacement handset free of charge, strange that isn't it?

Same sor tof thing happened to me .... fine at one point, front pocket for 10 minutes (didn't even sit down), pulled it out and a major multi-direction crack had developed.  I've had the device for 6 months always carying it in my front pocket and this just suddenly happened. The gorilla glass is fine ... it's a problem in the LCD layer. It radiates from a location where there is no sign of trauma.  I'm thinking Dell has instituted a manufacturing defect that stresses the underlying LCD, which weakens over time and then cracks under some slight load.

Another major flaw in the design is surrounding such a large screen with a thin plastic envelope.  The mass of the glass and the edge of the LCD element ensure that any localized pressure will introduce a split.  Mechanically, it's designed to fail under normal use.

touchglass thermal problem ??

was sitting on a warm appliance as it is being charged overnight

in the morning, i brought it out holding it in my hand (still feels warm) and was just about to enter my car when suddenly... plink!

the glass just web cracked  from a cold draft  >(

and it was just one of those cold canadian mornings, not even autumn yet.

rogers already declined to help, let's see what dell can assist with.

i am so sad today...i already love this 3rd streak replacement!

Quite disappointing....$249 to replace the glass....out-of-stock too for that matter (and the service rep said this is not a discontinued product)...Dell would not replace it under warranty because only 'hardware' is warranted (i had my original unit on Dec2010, recent replacement on Feb2011)....eventhough it was not my fault when this cracked screen happened I was still willing to pay but not this much, geez, this is half the price of the unit.