I could've sworn the $8/mo TEP had a deductible on it, even for manufacturer defects (although I could be wrong on that). Either way, I dumped it back in October for this very reason. You either fight it forever and (maybe) win (and in the meantime you're SOL), or you just keep the $8/mo + $100 deductible and buy another phone off-contract or something :-(
Sorry they're trying to screw you over....stick it to them!