Verizon Wireless Verizon Verizon Wireless stole my phone Elgin, Illinois

I have 3 phones and a 2 year agreement with Verizon Wireless.  I also have 3g hotspots, etc.  My bill is around $350/month.  

One of the phones on my account (my girlfriends Incredible 2) started acting really weird.  Her screen wouldn't respond to her touch, then sometimes it would, then it would move somewhere different than where she touched.  

We called Verizon to attempt to get an update to the phone or see if they had any suggestions.  After maybe 20 minutes of troubleshooting, they decided they were going to send her a replacement phone.  
She got the replacement phone in the mail, and returned the phone she had problems with.  All was assumed to be well.

1 month later I received a bill that was approx $700.   ($350 more than usual)

I called Verizon and asked them why my bill was so high.  They said that the phone I sent back had a damaged screen and that wasn't covered in the warranty, so they charged me full retail price for the replacement phone.  They said that since the shipping box didn't look damaged, it couldn't have happened in shipping.  Although this is a problem and I do feel taken advantage of because I have no option or right to dispute, this is not my major complaint.

My complaint is that they would not send me back my original phone that I purchased, even after countless, countless attempts.  If they had to charge me full price for my replacement phone and my warranty wasn't valid, then give me back my original phone.  Its mine!  

If you have a warranty on your car, and something happens to your new car that isnt covered, the car lot doesn't say we cant fix this under warranty, and oh by the way we're keeping your car.  

I could have used the phone to offset the cost of the new by either selling it used as-is or repairing it myself and reselling it.  I feel like I have been taken advantage of as a customer and the fact that I am in a contract with them for another dreadful year.  This unexpected expense has caused a domino effect of financial instability and stress over the past couple months as I have done my best to get caught up on this and maintain my electric, etc.  I have to have my phone for business, as it is my livelihood.

I feel that my device that wasn't covered should have been returned to me, and if it wasn't able to be, I should be compensated for it, as it DID in fact have value.