Apple Watch Series 5

Before I start with my review I would just like to say this. I received this watch from my son for my 70th birthday as a gift. I really liked it and I treated it with extreme care. It seemed so delicate that I even wrapped it in a soft cloth before putting it on charge. I know that it cost my son a lot of money and I know that I took good care of it. How the watch got damaged is a mystery to me. However it was damaged and this is what happened after. This review is not about the watch itself but about apples policies and business model. Is it l

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egal and how do they get away with it in Australia.

The heart rate monitor started malfunctioning on my watch during my daily workout at the gym. I took it of to see if my perspiration was blocking the signal, but what I discovered was some hairline cracks on the back glass. (As I said it seemed too delicate and it obviously is)
I called apple to make an appointment to take the watch in, but because of covid9 lock-down, they suggested that I send the watch in to them. I explained to them about the cracks in the back glass and they told me over the phone that it could be repaired under the warranty, “just send it in”. I was expecting a call back from them after posting the watch off to them. That never happened. They returned my watch to me not-repaired saying that they discovered some hairline cracks in the back glass that I had not mentioned. SIC
I then called them to discuss. They told me that they could not repair the watch but that if I paid them $480 then they would send me another one.
I then decided to take a trip down to “The Genius Bar” after the lock-down to have a face to face.
During my discussion with the Genius at the Genius-Bar, I specifically asked him if they would replace the watch with a new one. He said ‘no” it would probably be a refurbished watch. I was surprised at this because they said that the apple watches could not be repaired, so why give me a refurbished watch, why not just repair the one I have.
He “Genius” then said that It would take a long time for the repair. I said that that would be OK because I can wait. No he said. we do things this way and that was that.
The question is. “Are they scamming their customers? They charge an exorbitant standard rate for a replacement, they take the watches that are damaged, cannibalise them, and use the parts to repair other watches . “Is this legal?, Would it not have been cheaper for me if they simply replaced the back glass like any other decent watchmaker would do, and charge me a reasonable price. After all they know exactly what the problem is with the watch that I have. The watch is now lying at the bottom of my drawer, $480 for a repair that would probably cost say $100 on the top side.