You might be able to 'do a deal' with the supplying store for some money back. Personally, I would not be happy to just accept things as they are - they did a terrible job and are expecting you to pay the consequences. For sure Giant would not offer warranty for anything that does go wrong around that area - so they are bullshitting you already. Cutting those posts is easy, I have done many so they have no excuse. I don't think it will fall to pieces, but you resale value has gone down. I am less concerned by the chips but more by the white line heading down the post - is that just paint damage or is it worse?