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I, too, am a technician in a Sprint/Nextel Service Center. The general rule of thumb is that a cracked touchscreen or LCD can be considered "repairable," in that through replacing the touchscreen and flex cable, the phone could be mechanically refurbished (and cosmetically through housing replacement as well).
Many times, I will have Treo, PPC-6700, and PPC-6800 touchscreens in the shop so I can simply repair the phone in-house for this exact reason. Whenever possible, we try to keep the "guts" of the phone new, and simply replace what has broken (rather than replacing with a refurbished handset).
I wouldn't be that stressed over it, even if you just had ESRP.
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