Iphone 3.1 upgrade failed, unable to restore my iphone, Apple has no clue !

I never expected that from Apple. Tried upgrading my 3G to 3.1, upgrade failed, started restoring, but restore failed as well giving me error 1002 and USB and itunes logo. Opened ticket with Apple support, they had no clue, referred me to apple store, where they tried to restore it back twice, but in vain. Phone being out of warranty, they gave me no option but to pay $200 bucks to replace with new phone. I DONT deserve this from apple. I am not going accept no for an answer from apple.
This is breaking the trust!

I finally got through to my carrier 3s support and the news is not good. Apparently 3.1 is not backward compatible and will not restore to previous versions. If tomorrow I am not successful at trying to restore the phone to the current 3.1 release on 3's machines, the phone will stay dead and be replaced.
After being an apple customer for just over a month now, I am already sorry for leaving Nokia's faithful service and buying this friggan overcharged toy! Even with 3.0.1 I had sync trouble, sluggish performance and bad reception!
So please, what is the response from Apple as to why their firmware upgrade is bricking so many of their phones? Surely, it can't be just server problems! Anyone?

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