Answer: If your camera stopped working as the result of a defect, Nikon should replace it promptly at no charge.
I reviewed the correspondence between you and Nikon, and thought you handled this pretty well. You tried to contact the company in writing, asking it to repair or replace the camera.
Nikon sometimes responded, and sometimes it didn’t, which forced you to resort to calling it. I think that’s where the process broke down. When you’re trying to resolve a problem like this, getting everything in writing — especially any communication with a supervisor — is important.
I wouldn’t recommend buying the extended warranty on this or any camera. The technology becomes obsolete long before the warranty expires, so you’re not only insuring a purchase that is essentially worthless – you’re also enriching the company. (Point-and-shoot cameras like the Coolpix are just a category above disposable.)
Your camera came with a limited one-year warranty that covered parts and labor, but didn’t extend to any damage caused by negligence. I asked Nikon about your camera and it confirmed that your warranty was void because of damage to the unit.
“This is due to an impact, and is not something that just happens on a camera, as it requires a good amount of force or impact for this to happen to an LCD screen,” a representative told me.
Bottom line: The company is under no obligation to fix the camera.
Nikon apologized for the “miscommunications” without you, but reiterated its offer to replace the camera for $50, not including shipping.