Once I lost my AP and they replaced it for free, but then that replacement was water damaged during HHN. They did replace the damaged one, but they told me that if they needed to replace it again, it'd be a $10 fee.
I agree. it's ridiculous to have paper passes... Especially since you don't get a new one every year on renewal... Right now mine's pretty faded and sometimes they struggle to scan it. I don't feel like wearing a lanyard, so I always keep it in my wallet. I guess I could laminate it, but come on... *sigh*
PS: I have a Preferred Pass