If you report it stolen, they want a police report. Bad idea to call the cops and do that if it was not actually stolen.
My Droid was stolen last thursday. They don't ask you for a police report. Just got my replacement (refurbed) Droid yesterday. They only offered the old crap phones. I pushed the issue as much as I could be no one would budge. I used the argument that the Droid has a retail value of $549 and the others had retail values of $400 or less and that was not a comparable replacement. The Droid 2, X, and Inc all have comparable retail values. But like I said, the manager I spoke to said there was nothing he could do.
Guess it's all a matter of who you get on the line.