And that's what WB is offering, isn't it? A replacement. The question is whether you should expect to own and use something for almost 20 years, then get a refund. It'd be nice if they provided one, but I wouldn't say it's obvious to me that they must.
When no replacement discs are available, that's a more interesting edge case where they should feel obligated to do something to make it right in some other way, and I'd say a refund should be on the table.