YES! Replacement prices are steep. I think they were going to charge me $199 for a replacement watch 7 refurbI would think the majority Apple's refurbishing output is going to replacement devices. Their replacement prices can be pretty steep though. I had an iPad mini 4 that I paid $299 for on sale from an authorized dealer. But that's what Apple wanted to "repair" (really replace) it. However, if I needed a battery service, the $99 they charged made a bit more sense.
When I've had a real warranty issue, I really didn't have another choice. I did have my iPad mini 6 for about 7-8 months, so they just up and gave me one with a new battery, although the battery does seem have some premature wear. I'll probably get that replaced when eligible, unless that's 4 year down the line (when I'm probably ready for a new device.).
I bought a new watch 9 for $247 by trading in the Watch 7 at Best Buy that would have been returned to Apple.