Well, just thought I would update this for those that are interested.
Gdanaher was correct, our car has "port installed leather" I never knew that was an option, but everyone we've talked to at Toyota/the dealership/the upholstry shop agrees it is crap.
Here is the sequence of events that lead to where we are today (maybe somebody at corporate Toyota with a soul will read this...?):
We hesitantly agreed to allow the upholstry shop to redo the leather (actually vinyl) inserts.
We go to the upholstry shop to pick it up-
1. Glue dripped all over inside of doors.
2. Tabs on door pulls are broken from being removed and hanging loosely; Rattle when the doors are closed.
3. Later discover when my wife gets to work, driver's side door doesn't open from inside.
4. New vinyl still wrinkled, already coming unglued.
5. Bleach spots on panels still unaddressed.
Let me stop at this point and clarify a couple things. I am not a nit-picky anal person. I daily drive a 1-ton diesel truck with 1 inch of mud and chainsaws in the floorboards at any given time, so I'm not the type of person to sit and look for something wrong with doorpanels to complain about.
However, this is a brand-new car we paid a lot of money for and we work hard to take care of it. We want it to look like a new/presentable car.
I called the service advisor from the upholstry shop parking lot, told him to order the damn Toyota panels. No way am I letting these monkeys touch the car again. He agrees to. Calls my wife a week later, says they'll be in in a week and he'll have her car detailed and a loaner waiting for her.
She takes time off work for her appointment. No loaner car there, they are sending the car to a different upholstry shop.
At this point I go through the roof. Speak with shop foreman & service manager. He claims he doesn't have the authority to order factory-installed leather panels, only repair those; Gives me Toyota Customer Care's #. I offer to pay the difference in Leather packages. He said the can replace ours with cloth panels or I can buy the factory-leather panels for $1k each and install them myself.
Call Toyota Customer Care, start case.
"Toyota Rep" at same dealership calls me and says his district manager will only continue to repair the panels. I refuse to have the car taken to any more shops; Tell him I will only accept new panels.
Thats where we are now. I honestly believe the panels are beyond repair at this point. Between the glue, the broken tabs, the bleach spots, and then the vinyl, I just don't see what they could salvage. The case has been closed according to the rep. at the dealership.
Sorry for the book... Any advice is welcome at this point...
Ben