Iphone 1/3 of the screen has no or really bad responce

Hey i got this problem where 1/3 of the screen will not work or respond to my finger. I tried everything. Restoring it, restarting it, taking it to apple store, i even took it to ATT store, and i called apple but none of them want to fix it. Apple said that my warranty just ended so i have to pay 199 to fix it. (i could buy a new iphone for that price.) The phone was never dropped and never had any problems but all a sudden 1/3 of screen stopped working. This problem is wide spread now but no one bring the problem here to APPLE DISCUSSION so that why i bring it here.
Any ideas on why it stopped working?

Hi,
Try the general tips in this article: http://support.apple.com/kb/HT1650#faq5
Make sure there is nothing between your iPhone screen and your finger, like a glove or screen protecter.
You can also restore the iPhone to rule out software issues. This article http://docs.info.apple.com/article.html?artnum=305744 will walk you through restoring the iPhone.
If the issue persists after trying those tips, the iPhone needs hardware repair.
-Jason

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