IPhone shuts down on it's own

Hi All,
My iPhone 4 (16GB, AT&T, 2 years old this month) has been shutting down randomly for about two weeks now, with increasing frequency. I've noticed no pattern which brings this on, no particular app, no rhyme or reason. Trying to restart using the top/lock button sometimes yields a restart that fails (silver Apple logo, then black, no beep) or the "out of battery" dim screen. I've also tried various button combinations (home + lock, home + lock + volume buttons, both, and individually) to no avail. I've restored the phone and backed up from recent and old backup copies.  I've restored and used it as a new phone, both had no effect. The only thing that brings it back is to plug it into a power source of some sort.
Some articles and discussions suggest this is a battery issue. As of 2-3 weeks ago, I had about a full day's worth of charge if I charged the iPhone overnight. This came on rather suddenly, and I know batteries do not normally fail so epically so quickly. I'm not rough on the device, it lives in my pocket and I have a case on it.
Can someone tell me what is going on here, and if there is a fix? I'm at the end of my contract with AT&T, and was planning on just continuing on with this phone as I'm not in a position to purchase a new one. It's clearly out of warranty, and I do not want to think that Apple, a company I have purchased thousands of dollars worth of computers and iDevices from, and supported since their stock prices was in the double digits, could let something like this happen "coincidentally" when my contract is up.
Thank you all,
-S

Basic troubleshooting from the User's Guide is reset, restart, restore (first from backup then as new).  Try each of these in order until the issue is resolved.

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