IPhone 3g barely responsive home button

Hi All,
My boyfriend and I both got iPhone 3g devices in Nov 09. We didn't buy AppleCare because it's probably cheaper to just get a new phone and with the strict limitations on coverage we'd have been better off going through Squaretrade, but we did neither. Boo on us.
I have seen a plethora of material on the internet regarding this problem, but no details as to what actually causes it. I am curious to know if Apple acknowledges this issue as a defect, or if they pass it off as as a "normal wear and tear" problem. My boyfriend barely uses his iPhone (most times, less than 20 mb a month and probably about 60 minutes of talk time total), so even though its over a year old, I highly doubt that's the real issue. Before I spend my life savings asking a tech to troubleshoot, I'd like to know what other people's experience have been. How much does it cost to fix if you don't have apple care? Do they ever disclose the root issue - if so what is it? Is the genius bar still charging crazy fees just to interact with customers, or will they troubleshoot first and then charge you when they fix it? If it's a known issue, will they fix for free even if you don't have AC and are out of warranty? I've also seen some suggestions to restore - has anyone had success with this?
Any assistance or guidance is appreciated.

I'm sorry, no, there isn't. Depending on where you live, and Out of Warranty replacement for the iPhone 4 is $149USD. Check your local Apple store or Authorized Apple Service Center for prices.
Sorry I was thinking of something else. You have no alternative but to get the device fixed. You can either choose Apple for repair or a 3rd party repair facility.

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