Welcome to the forum rqathome. I feel your pain on that one. When you get a chance, check out this thread:
http://www.forestriverforums.com/for...cap-53444.html
I've been through this 3 times. Mine looked pretty close to that, but were more towards the top. Repaired and repainted once, replaced the whole cap second time, and then repaired the new cap and repainted on the 3rd round. Can it be fixed, yes, if it is done correctly. Ours was only in the gel coat, or seemed to be. I looked at the old cap after it was removed, and there were no signs of thin fiberglass or anything.
Have you contacted your dealer or Salem / Forest River. Need to get it documented. I'm wondering now if this is the same cap manufacturer that builds the Silverback caps.