Can you actually judge screen quality by opening up a new iPad in-store? Wouldn't you have to go all the way past the start-up pages? What happens if you reject the new iPad - does it go back to be refurbished? Would be interested to know.
It's pretty simple really. You don't actually have to sync your iTunes account with the iPad, or activate the data/sim card, so don't worry. Just go through the start-up screens, until you can get to the home screen and have access to the basic apps and settings.
From there, you can adjust brightness, access internet via Apple's WiFi, and make your basic screen assessments. Check for scratches, yellow tint, light leaks, dead pixels, etc. By accessing the WiFi, you can load solid colored pages to check for dead pixels and the yellow tint. Use other iPad's and MBP's on display in store, as well as your own judgement, as a base reference.
When I had to replace my 3rd gen iPad, I brought it into the Apple store. The geniuses gave me a brand new one, not a refurb. I asked them to wait a second before they left, and I skipped through the set-up screens, got to the main screen, and gave it a quick, but thorough once-over checkup. Seeing no problems, I was satisfied with the replacement, said thank you, packed up my new iPad, and went home to actually set it up. I've had no problems since, and I was extremely happy with my replacement.
From what I was told, depending on your iPad's issue, they are sent to different departments for repairs, which will eventually become refurbished iPads.
Hope this helps.
