How do I complain about an app that took away features and made me pay to upgrade to get them back?

I had the app Moe's Notes for at least three months before they took away all of the features that made it useful and asked me to pay for a $3 upgrade to get them back.
It used to allow me to take multiple pictures of a place and record the location (I used it for scouting locations for films). Now it consistently drops the pin at an address that is not the address I'm at and when I try to correct it it makes me upgrade. It's completely useless now.
I tried to upgrade and though I've been billed I still get messages from my app that the upgrade didn't go through.
Apple's support has really gone to ****, I've been traveling in circles on the website since I followed the "report a problem" link in my receipt e-mail from the iTunes store.
I'm really getting sick of how Apple's App system works, there's so much needless buerocracy that doesn't protect consumers from people who can just take away products you've paid for. It's like Home Depot sneaking into your house at night to remove the claw from your hammer or one of the splines in your phillips head screwdriver.

The issue is as to whether I am out of warranty or the phone is out of warranty. Seems it's me!
The phone first went into action in late April 2011 and so is less than 1 year old. Do apple warranty, for 1 year, I will have A working iPhone or do they warrant that the specific iPhone in my pocket will work for one year?
While I can appreciate there must be rules, most people talk about a one year warranty on the phone. In any event, it's not clever of Apple - shouldn't it be reasonable to expect a phone to operate for at least 1 year? I can now not hear people on calls in a lot of situations where there is any appreciable amount of background noise and that is not acceptable in my book on a unit less than one year old.

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