Every company has a very specific set of guidelines that are examined when determining whether or not a ball is eligible for warranty replacement. You didn't provide us with all of the relevant details surrounding your individual situation, but if they decided not to replace the ball, especially a brand new ball, then there had to have been a specific reason why they opted not to do so. What did they give as a reason within the email?
These companies want to keep customers happy, so they usually opt to just go ahead and replace balls so as to avoid posts like this one. After all, bad publicity is never good for business. At the same time, they'd go broke if they just replaced everything with no questions asked. As such, again, there had to be something about the ball - where it was bought, how it was drilled, what they saw in the pictures, etc. - that made it clear that said ball was not eligible for replacement in this case.
I'm really sorry for your bad fortune. It sucks to be the one who loses out when something like this happens. Still, it's a bit unfair to make a post with a far-reaching claim like "Storm does NOT stand behind their warranty." I know several people who have had equipment warrantied by Storm over the years with no problem, myself included. As such, again, there had to be a reason why they chose to deny your claim.