White screen after dropping iPod Touch 4G. Please help?

About a month ago I dropped my iPod ON the screen. (I have a rubber case for the back and no screen protector) I have dropped it many times before, from higher heights, but this time I knew it was broken. I picked it up after about 5 seconds and I slowly watched my screen go white. I them reset it to find nothing had changed. So I decided to completely restart the iPod using iTunes...no change. There is no locking or unlocking sound, but voice command does work so I CAN listen to music. At the right angle you can see a section in the screen where it is whiter (where I dropped it.) I called 1-800-APL-CARE and they had me send it to them for repair under free warranty. They only sent it back in the same condition. I called asking why and thy said that I had "water damage in the dock." But if they really inspected the iPod they would have say I had dropped it. According to them they cannot repair my iPod and all I can only use it for music via voice command. Is there anything I can do? Any suggestions at all are appreciated. I DO plan on buying a new iPod eventually though.