Sorry to hear your TV had cosmetic damage. I've ordered two 20" TVs, a dvd/vcr, a dvd recorder and a regular dvd player from here over the past 2 years and never had any problems.
On the upside, maybe that was the only thing wrong with your TV. Maybe the inner workings were never faulty to begin with.
I checked out Walmart's website and they didn't have a 27" Faux Flat TV by Philips. However, the Panasonic model they did have was $396. If I remeber correctly, Philips Outlet doesn't charge tax either.
Maybe you could disguise the scratches with a little touch up work using a marker or something. Since it doesn't fit in your entertainment center, may you could stick a potted plant next to it. If the scratches are on the sides, you probably won't be able to notice them if you are in front of the TV watching it.