Scratch on the cover looks from handling when packaged for shipping, I can see no reason for that to occur during the printing process. The scratch down the center of the other page is toner "cracking/dimpling" from to much toner, as you mentioned that it would not lay flat. That is what I mentioned before about ink coverage and density, this happens in dark colors such as rich black that lays down to much toner in the same position on the paper. I would look for total density (adding all CMYK values together) and keep it less than what IS recommends, I try to keep it under 280. As far as recommendations, small printers are set up to do this, it is just that we cannot compete with POD pricing who are specifically setup for this process. I have and do print POD as a small print shop, but I send the binding out to another vendor, again it is the pricing as mine is usually 50%+ or so more than those PODs, but smaller shops have better quality control usually. What type of binding is that, hard to tell from the photos, perfect binding?
mnawij