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It's most likely that the damage itself happened at some earlier time, but the reader continued to work ok. Anything like being in bag or pocket and some other object putting pressure against the cover which pressed against the screen, occurrences along those lines are the most common causes of screen breaks. Also excessive heat from leaving it inside locked cars is another common cause. Again, the damage may not immediately show up on the reader, but it's there. But the screen didn't just instantly break without some damage having been done to it at some point.
Kindle screens are subject to the same issues, but their customer service is better as you noted (they seem willing to do anything to keep customers to themselves). But I've had many readers since 2010 and every one of them still have screens in pristine condition and are working perfectly, including 2 types of Kobo readers. And I take my reader with me everywhere, everytime I leave the house, it's used quite often.
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