I did cut out the mini pack straps for less weight and more room inside the pouch. I also cut out one of the interior walls in the pouch to created one larger pocket (now accessible by two zippers).
I also cut out a little red clip on the main bag that provided me no use and was just getting in my way.
I have used white fabric paint on the straps to paint my website on it. If you just get some more fabric paint and go over it it should cover it fine.
Osprey liftime warranty should cover any naturally caused damages. Purchased this bag last year. Goes for $480 new on Osprey site currently.