Considering how many hard falls I have taken since starting to mountain bike when I was a preteen, I would not think a quick low speed spill would result in any damage. But I found this dinger the other day and I don't really like the site of it. The bike is only a year old.
1st question: Is the frame toast? Would continuing to ride it be a risky move?
2nd Question: Given that I fell I don't think warranty applies but I do know that specialized offers a crash replacement program. Does anybody have any experience with this, I would hope I could just get another aluminum frame as there is no way I can drop $3500 and the carbon frame.
If you were to get replacement parts it would be just that. Part of the frame, not the whole thing. You might just be able to get the seat stay and replace that. Talk with your LBS.
I've heard specialized warranty is pretty good, definitely check if they will get you a new rear triangle at least. Otherwise I would probably keep riding that if it was mine, and just keep an eye on it to make sure nothing looks like it is bending.