As mentioned in several comments above, it seems that airlines tend to cap their luggage claims at around the $200 range. I will use this as a benchmark on my luggage expense. I myself have a pair of Briggs & Riley that have accompanied myself and +1 for 10+ years and over million miles. Aside from normal wear & tear, I had one incident where I valet checked the bag prior to boarding an RJ, the bag got stuck in the luggage elevator while being lowered and the handle broke off, as well as huge gash on the front, and one wheel casing broke. AA gave me a $150 check after showing them proof of the damage. Luckily with B&R, their lifetime warranty is well worth it and they repaired the luggage with brand new outside material, lining, shell, handle and wheel.

You should send Tumi pictures of the bag and see what they say, because certainly I agree with you in that spending that amount of money should certainly give you some sense of security that your belongings are safe while using their product. It doesn't appear so by the pictures, and I would be reluctant about it. AA is not going to pony up for a replacement product at the price range, but perhaps Tumi could do something for you instead.