I bought my suit in '03 and sent it back in '11 for repairs and gaskets. Gaskets were great and it had 15-20 patches. I have to admit that most of the patches were areas I'd caused the pinholes--over half of them the feet. Secretly I wished for a new one. I was tired of mango.
It was damp that season and early last season, so I sent it back again last May. They said it was delaminating and offered me a new suit.
If its repairable, it is my understanding they'll fix it; if not repairable, they'll replace it.
175 sounds excessive, but if you've holed the suit, they can fix it.
Fabric showing through sounds unusual. When mine "delaminates", it never felt thinner, but when the membrane got saturated, it did show the outside color.
Call Kokatat. Be honest with them, but don't be the "squeaky wheel". They're good people and don't deserve an aggressive approach.