Infuriated by this!

It's not iCloud, it's just the iTunes store, you can download all your purchases in one go to your PC and then sync them to your device.

That's one of the nicest things about an iphone. Drop your phone and break it, get new one, hook to computer and restore from backup and it's just like your old one. This can be done through iCloud now if you backup that way instead of to the computer.
 
I actually owned an iPhone before I got a windows phone. And I got the extended warranty. Well I dropped mine the whole screen shattered, guess what they wouldn't replace it! Lame-o! Had to buy a brand new iphone. Ugh!! Im glad my husband saved my info regularly. But most of all am glad I switched to a windows phone.

Sent from my {amazing windows phone} using Board Express
 
I actually owned an iPhone before I got a windows phone. And I got the extended warranty. Well I dropped mine the whole screen shattered, guess what they wouldn't replace it! Lame-o! Had to buy a brand new iphone. Ugh!! Im glad my husband saved my info regularly. But most of all am glad I switched to a windows phone.

Sent from my {amazing windows phone} using Board Express

The issue is not with Apple or iphone. Extended warranty only covers parts that fail due to malfunctioning. If you drop the phone and it breaks, the only way for you to get a low cost replacement if you purchased "accidental damage" insurance, which is separate from the extended warranty.