My iPhone 5 died/broken lock button/dust in camera lens

My iPhone died last night.  Tried plugging it in to turn it on, doesn't work.  My lock button also doesn't work, so I can't try resetting it.  I also have so much dust in my camera lens, that it won't focus and I can't take clear picutres.  I brought it to the Apple store with all these problems, and they're trying to charge me $269 for all this damage that's the cause a faulty product, not myself.  They can't replace the camera, they have to replace the entire phone.  What do I do?

It's a common problem with the 4S, but not with the 5. Not that that's relevant. Hardware wears out. "Normal wear and tear" is not a defect. The warranty is 1 year, and you had an option to extend it to 2 years, which you apparently did not take. The lock button on my 4S stopped working 22 months after I bought it. I also bought AppleCare+, so I took it to an Apple store and they replaced the phone.
There are independent service shops that can replace the switch. That's one option. The other is to take it to an Apple store and if it is not long out of warranty and you are not belligerent they may replace the phone for you anyway.

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