IPhone 3GS upgrade

I am really disappointed with Apple. I stupidly decided to update my phone to the latest version of iTunes and the phone froze with the iTunes USB caption. I tried everything to get it to reboot but ended up taking it down to the local genius bar. They spent at least an hour and a half trying to re-boot it but eventually said it was a hardware problem and that I'd have to pay in excess of £100 for a replacement phone. Needless to say I took it home and did a trawl of the net for a solution since, I have to say, this is not the first time an iTunes update has failed for this same phone with the same issue. Last time the genius bar managed to get it working again.
There are loads of apparent solutions out there on youtube and I tried each of them unsuccessfully. Then I came across Blackra1n. Amazing. I downloaded an app that corrected iTunes on my Mac, then connected the iPhone and ran the Blackra1n iPhone app. Brilliant. The phone is now working and has been restored in less than 10 minutes.
It's very clear that this is NOT a hardware problem. Apple, please tell your genius bar experts about this problem. When I trawled the net yesterday I found one site had had in excess of 250,000 hits. This is not a one off problem and it is certainly NOT a hardware issue. This is Apple's poor software engineering. Please collaborate with the software engineers at Blacra1n. They know how to solve this problem. It's utrageous that Apple should ask customers to pay for an error that is totally theirs.

No, AT&T makes you get a new SIM card (which is no big deal). If you had a non-iPhone you can import your SIM-stored contacts. I don't see why you would object to getting a new SIM card.

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