Erase all data or ignore?

Hi all.
I'v arranged a repair with apple for my iPhone 4 (its on its last few days of warranty).
However I am unsure about the instructions they give.
They say if possible to delete all the content off your iPhone.
My phone has many problems (cant hear anything when making/receiving calls, home key unresponsive, vibrates randomly for hours & freezes etc). I'm afraid to turn the phone on & erase all the data incase I do more damage & apple use it as an excuse not to fix the iPhone!! (my contents are backed up from previous syncing).
What should I do?

Will I do any software damage by doing this??
The reason I dont want to turn on the phone is because, it vibrated for over 3 hrs & then turned off, I have not switched it on since.
I'm afraid if I switch it on it will do more damage than good.

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