I cant understand what went wrong. I have used this product several times with no bad side effects whatsoever, as a matter of fact I would strongly encourage its use.
In the first place when i have used it I have polished the entire screen area not just in the one area where the problem persisted. I have polished it for a long period of time not just a few minutes so it is nice and smooth and all shiny evenly spread, otherwise if you just polish where the scratch area was you will wind up with wht you describe as a haze all around the area you polished, this is akin to taking a glass window and cleaning the center of it with Windex and leaving the rest of it dirty.
And as far as the housing is concerned, all I can say is I never polished the housing, the application clearly states the screen area.
BB Tour 9650
Running OS 126.96.36.1994