I've dropped mine twice in the year and 4 months that I've had it. I don't baby it as much as you would. I just added a screen protector and keep it in its protection sleeve thing that came with it. Sometimes i just keep it in my pocket, accidentally sometimes with my keys. Nothing happens really. Couple of scratches that are only visible in the light. No scratches on the screen due to the screen protector.
Clix 2 is much better. If some store had it where i live, I'd sell my 1st gen and get it. But I'm happy enough with the Clix. Sound is really good too.