"No Wi-Fi" - Grayed Out in Settings - iPhone 3G

I realize similar topics have been discussed, but I can't pinpoint this to a specific OS update- it's my wife's iPhone, and she didn't even realize it had stopped working. The option is grayed out in the settings, and no combination of resetting the network settings, hard resets, updates, or complete restores has fixed the issue.
Is there a way to figure out if this is, in fact, a hardware problem? How would I know what to replace?
Thanks.

I also have the same issue.
It happens when the phone was upgraded to 4.0.1
I sent my 3G to provider and they said that it is a hardware problem. Anyway since my iphone it is not under warranty they do not replace the phone.
Trying to fix the problem I restored the phone twice yesterday. In both cases the wifi worked perfectly only for a few moments and then it was lost permanently.
Please try to report the issue in: http://bugreport.apple.com/
I got an email from Apple Bug Reporter today that asks me to attach my device log to the bug report. Device logs can be retrieved from the iPhone Configuration Utility.
For the history, I restored twice the iphone today and the wifi is dead. Particularly after the second restore the sign in settings for the first time turns into grey: "No Wi-Fi"

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I don't know if these helps but I'm going to describe what happened to me with these, first I must say I have an iphone 4S which when bought, the wifi was working fine. The Wifi grayed issue started happening right after I updated IOS version 7.1.1 to 7.1.2. At first I noticed the phone was becoming slow as **** and that my phone won't connect to any Wifis, so I switched my wifi off and my phone became fast again. If I happened to turn the wifi on again my iphone would just become slow again.
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"No Wi-Fi" - Grayed Out in Settings - iPhone 3G

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