Yes, glad to hear PS will repair your bag! The Birch is such a lovely color. Hopefully this will be the end of any quality issues you have.
My PS1 has been through practically everything, from rain storms to a major orange juice spill. While it has a couple of stains on the back from my own carelessness, I haven't had a single problem with screws, seams, or any other bag construction issues. I hope your experience with your PS1 is the exception and not the rule.
I honestly feel that with any bag, there will be wear and tear, especially the more you love it. I'm not upset it happened, just sad I'll be without it for the first part of summer. I'm sure they'll thoroughly examine all of it to ensure it doesn't re-occur!