Home button broke and Apple wont fix it?

Question

I became a first time iphone user a little over a year ago through Verizon.  I have an iphone 4.  About 3 weeks ago (50 days after my one year warranty ran out, the home button on my phone broke.  Sometimes it flat out doesnt respond, other times it acts as if it is pressed in and constantly flips between the desktop and open apps and also activates voice command and randomly dials people.  Essentially it has become unusable.
I've gone through the list of common fixes for this problem and tried them all.  I've tried calibrating the home button,  using the charging adapter to unstick the button, ive tried the isopropyl alcohol in the button, nothimg fixed it. I even did a full format and restoring of the phone.
I finally took it to my local Apple store.  They looked at it, determined it was indeed a hardware issue with the button and told me they will not repair it and that my only option is to buy a new 4 for $200.  I was willing to pay to have this issue fixed as I am out if warranty and do not have any coverage plan but they wont do that.  Im pretty unsatisfied with this answer as you would expect.   As a first time Apple customer I dont have a good first impression.  Im realistic and understand that im out of warranty and thats why im willing to pay to have it repaired, but when im told my only option is to buy a new phone...wrong answer.  I now just feel as if its a tactic to increase revenue.  Not surprising, I know. 
Anyone ever experienced this before and have any suggestions?  Unless it fixes itself or I get a satisfactory resolution from Apple, I'll probably activate an old phone, wait a year for my verizon contract to renew and get an android. 

Answer 1

wdr4 wrote:
I finally took it to my local Apple store.  They looked at it, determined it was indeed a hardware issue with the button and told me they will not repair it and that my only option is to buy a new 4 for $200.
It is actually a refurbished iPhone 4 and it is $149 (U.S.)
See this -> http://support.apple.com/kb/index?page=servicefaq&geo=United_States&product=ipho ne
You can go back and speak with the manager and explain how you feel.
Be nice but firm. Don't simply complain.
-> http://www.forbes.com/sites/jennifercohen/2013/12/09/6-effective-ways-to-get-wha t-you-want-now/
-> http://lifehacker.com/how-to-use-the-secrets-of-master-influencers-to-get-wha-14 54693003
-> http://lifehacker.com/5765795/how-to-complain-to-get-what-you-want-without-being -a-huge-*******