Sony a57 rubber peeling off after only 4 months.

You said in your original post that Sony has subcontracted servicing to some local third party.  I think you should ask Sony to confirm that they have also delegated to this third party the right to decide whether any particular claim falls within Sony's warranty.

If Sony says "No", then you can tell them that their subcontractor is doing a lousy job, and BTW, trashing their brand image.  And ask them to put you in contact with someone who can make your camera fulfill all the promises for which you bought it.

If Sony says "Yes", then you can tell the world that Sony's warranty doesn't cover the buyer against bits of camera falling off.  In the first instance, of course, you can suggest to Sony that they might prefer you not to.  And that if they fixed this problem, you would be quiet.

My consumer satisfaction experience, based in Europe, suggests you find the highest executive in the country, and make contact with him.   When I had problems with the build quality of a new house in the UK, I wrote to the Chief Executive of the quoted building company, and two days later everything had been fixed.  When you run into any opposition on the swichboard, just ask "Put me in touch with your manager, please"

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Paypal? Just say "No!"