Re: Crappy leather...must be defective
Welcome to the wonderful world of GM leather...
My '99 Tahoe did the same thing on the arm rest and driver's seat. It didn't happen on the back seats, though, so I am a little surprised. I also kept them well treated.
I'd say that a good uphostery job should fix that right up, or upgrade to aftermarket seats and redo the rear to match...
I guess I will have this to look forward to on my '06.... 
Good Luck. The Truck is still worth the hassles if you ask me...
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2006 Twilight Maroon H2, Procomp 6001 rims, 35" X 12.5 X 17 Xterrain tires, Ram over-the-hood brush guard, Jet Stage I, Warn 9.5 winch and winch bumper, Hedman Headers, K&N Air charger, Lightforce driving lights, a little CHROME for good measure
2006 Victory Red H3 (The Titanic), R.I.P. - It didn't float
1968 Mustang GT convertible
2005 Harley Davidson Hertitage Softail, Stage I, Vance and Hines Big Shot Longs - Sold 
2004 Jaguar S-Type (the wifemobile)
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