My daughter dropped her iPod on holiday ,so we paid £45 for a new screen two weeks ago . Last week she put it under her duvet and lent on it by mistake and now we get this ..
Not wanting to state the obvious but the screen/lcd is bust. The crack starts at the top right of the white triangle and the lcd damage radiats out. Looks like she's cost you another 45 quid I'm afraid.
That said, they are usually still usable as the digitiser doesn't usually break so you could just tell her to live with it.
EDIT: I should tell you that if you were my dad and you went for the latter option I would hate you forever but thats just me