This is so wrong. A warranty is a legal document, it is part of the contract, and it's protected by law - in addition to national laws that go beyond the warranty. It's not something they can choose not to honour.

When something is sold with a warranty, and the damage is covered by the warranty, they have a legal binding to replace the damaged product with an equivalent or better product. If they cannot, they are breaking the contract, and you can demand your money back.

The problem is that you have to document that the replacement product isn't equivalent or better.