Am I over reacting for wanting to return this?

When I purchased my Damier Cobalt Défilé folded messenger bag this summer, they had a brand new one that was damaged because a SA had squeezed the handle in a mannequin's hand. The result was a badly damaged leather handle for $3200 bag!!!
We have to remember that these products are made and manipulated by people... who don't always perform perfectly. That's the truth about all brands and all industries. I worked for Bottega Veneta and even if our bags were 99.9% perfect, sometimes something weird or wrong showed up. And you always wonder how in the world no one at the factory saw it!
I think customer service is always skeptical because many many people try to return products that they have indeed damage (I am not saying you did of course) and people with buyer's regret.