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Dealer should replace the radio for a few reasons:
One, customer satisfaction. The paint is wearing off, and this should not happen.
Two, GM tracks these replacements via the labor operation number. A high hit on that number goes to the engineers who investigate, and in this case they should contact the supplier and get them to fix the problem.
Three, if enough are replaced, the supplier will not appreciate this and get it fixed.
The radio costs, and the labor to switch out will be billed back to the supplier, and that makes them open their eyes and get it fixed.
Four, what part of "bumper-to-bumper" does the dealer not understand. It is a manufacturing defect, it is inside the bumpers, it is not being dragged behind the vehicle. A manufacturing defect between the bumpers, within the mileage stated, needs to be addressed by the dealer...PERIOD.
Dealer screws you around, nail 'em on the JD Powers survey if you get one. Report them to customer assistance, or my best approach yet; confront them in the sales area on a busy day.

I only have 3300 miles, but I checked again yesterday and there is no wear at all on mine, even the first three buttons on the channel selector (my main surfing buttons) or the display button (the other constantly used button). Might be the design of the radio since it is the MP3 and others might have the six-disc or base radio.
Not sure who manufacturers these radios. GM has used two major suppliers: Delphi and Panasonic.

The Hummer assistance center is the premium assistance center for GM, they handle Cadillac, GMC and Hummer; all other vehicles go through the assistance center in Tampa, FL. The premium assistance center is known to handle customer complaints a lot more efficiently than the other assistance center.