My account is apparently blocked...

on my iPhone 4, but NOT on either my iPad or my new Touch. All the devices use the exact same iTunes account information.
On the iPhone I now cannot update apps, purchase apps, or make in-app purchases. I can do all these things on both of the other devices.
I chatted with iTunes tech support. The person told me that my account was blocked for the iPhone, but couldn't explain how that can be true on only that device and not the others. He said he would request that the account be unblocked and it would take 24 hours. It's longer than that now, it hasn't been unblocked and I am extraordinarily frustrated. First time in 20 years that Apple Support has let me down. Has something like this happened to anyone else? If so, what was the outcome?
Thanks.

First time I've heard this. I would assume if your iTunes account was blocked, it would be blocked on your iPhone, your iPad, your iPod Touch, and with iTunes on your computer.
You should have Sync Apps selected under the Apps tab for your iPhone sync preferences with iTunes. If so and in the interim, you can download apps and app updates with iTunes on your computer followed by a sync to install the apps and the app updates on your iPhone.
If you don't have Sync Apps selected under the Apps tab for your iPhone sync preferences with iTunes and all apps on your iPhone are not in your iTunes library where they should be as well, before selecting this with your iPhone connected to iTunes, at the iTunes menu bar go to File and select Transfer Purchases From - the name of your iPhone. After confirming all apps on your iPhone are in your iTunes library on your computer, check for app updates with iTunes on your computer to download all app updates. Follow this by selecting Sync Apps under the Apps tab and after making sure all apps on your iPhone are selected bellow, follow this by a sync which will install the app updates on your iPhone. And with this selected and after your iTunes account is no longer blocked on your iPhone, after downloading an app or an app update with your iPhone, the app will be copied to your iTunes library automatically the first time you sync your iPhone with iTunes after doing so.
The same applies with Sync Apps being selected under the Apps tab for your iPad and iPod Touch sync preferences with iTunes.

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