Problem with my iPod touch: Frozen screen, unable to access anything as slider does not work, will not accept a full restore.  Apple Store advised that it is a 'hardware' problem and I could trade-in!

I am a relatively 'new' user.  Touch was a gift, I used it in a simplistic way - listened to music took a few photos, added a few calendar events.  After a year I then decided to be more proactive and found a few free apps (Solitaire) - then had a the frozen screen problem which I though was connected to low battery, but it wasn't.  I recharged it, still could not access, then tried a full restore and got an error message.  Took it to a Genius Bar and was told it was a hardware problem and as it is out of warranty  I could trade in or just buy a different product.  As this is my first Apple product is this usual?  Do Apple products have a very short shelf life - I anticipated that it would last me longer than a year!  Has anyone else had this problem?  Was it able to be resolved? Or is it worth trying to get it repaired - and if so who can do it - Apple  Store did not offer that to me as an option?

Sure sounds like a hardware problem. It happens some times. The iPod is just an electrical device.
Apple will exchange it for a refurbished one for this price. Apple does not repair your iPod.
Apple - Support - iPod - Repair pricing
A third-party place like the following maybe less expensive. Google for more places.
iPhone Repair, Service & Parts: iPod Touch, iPad, MacBook Pro Screens

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