Ipad 2 update to ios 8.1 problems

I am new to Apple Support communities, so I wonder if this has been covered before.  I updated by ipad 2 to ios 8.1 and then 8.12.  Immediately after 8.1 I started having problems.  The main problems were with power buttons and now with communication with itunes.  It is currently non-functional.  I took it to the genius bar tonight and was told this is a "hardware" problem.  I doubt this for several reasons.  First the problems began IMMEDIATELY after updating to 8.1.  Second they offered me $75 for a trade in.  I could purchase a new ipad 2 for $249, so to get $75 trade for one with "hardware" issues makes NO sense.  Finally hardware needs instructions from the OS so how could one tell the difference between true hardware issues and "hardware issues" caused by defective drivers?
Has anyone else had these problems and doe anyone have any suggestions?

SKVAN wrote:
... they offered me $75 for a trade in.  I could purchase a new ipad 2 for $249, so to get $75 trade for one with "hardware" issues makes NO sense.
Which part "makes no sense"?  Do you think a $75 offer is too much or too little?  I think it's a whole lot.  Check this out (for the U.S. stores):
SKVAN wrote:
... how could one tell the difference between true hardware issues and "hardware issues" caused by defective drivers?
You are saying you do not believe the Apple Store geniuses.  I guess that's your prerogative.  Obviously, they have the tools to make this determination.

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