Actually, the seller (bikesdirect.com) sent me a new bike, and dealt with the UPS claim themselves. Kudos to bikesdirect.
Did BD not put any packaging on the bike? From the look of the initial picture it seems like there is no padding at all. If that's how it was sent and I was UPS I would just think "Eff that, there's no protection on the bike."
But then again, I don't know if it was packed superwell and you removed it all and then took the picture (or if there are other pictures).