I'm sorry but everything you experienced was in the O2 biblical process manual. The computer is God and cannot be overridden. I doubt anyone has the nous or authority to do so.
Dealing with the common sense you mention, sorry but it doesn't exist whether you are a new customer or have been with them since the Cellnet days. Procedure must be followed!
Customer service or the complaints department will certainly adjust your bill and may well offer you a generous goodwill gesture of credit for your troubles.
It was just a set of unfortunate circumstances, no driving licence or passport and the phone with slight damage whereby you had to go through customer service for it to be replaced.
I hope the phone is still in stock when you place the next order (they won't keep the returned one for you) and I wish you much good luck.
Do let us know how you go on.
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