IPhone Gen 1 - Bottom Multi-Touch non-responsive

My phone is out of warranty as of July 2nd, 2008. Google this issue about the bottom half of the iHone not working and this is a KNOWN MANUFACTURE defect but Apple wants $199 to replace with like model of Gen 1 iPhone.
If I want to spend the same money I can get the 3G but I have to extend my contract for a KNOWN MANUFACTURE defect.
Does anyone work at apple that could please help me replace my first gen iphone with another first gen. iphone.
- Life long Apple User

I just had the same problem with a non-responsive bootom portion of the screen on my 1st generation. Apple knows that it is a screen defect yet to all of us first buyers and believers in Aplle service, they just want to sell us a new iphone. I had gone into the store after being told tha it was a know defect to Apple the day before to purchase a new 3G iphone for my girlfriend and replace my 1st generation phone...but am told that to since my phone was purchased in July of 2007, known defect or not, it will not be replaced and to repair it is the same price as the new 3G!!! so much for believing in Apple service, especailly when I see that others below have had their phone replaced "no questions asked"!!! If anyone hears of replacement or Apple standing up to the service standards, please let me know.

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