Sleep / Wake button broken: Apple Genius Says $250 to Repair

I've been on this forum before asking on what to do about jammed sleep / wake button! The phone will randomly go to the apple screen, and can only be turned back on by putting it on the power supply.
I set up a meeting with an apple genius today, and the guy looked at my phone and said that the limited warranty did not cover what had happened. He blamed the jam on me abusing the phone. The overall solution to this is me paying $250 for them to go in the back and give me a refurb phone. I have the 4GB phone which I overall paid $299 for.
Personally, I'm not to happy with how I was treated today!

Tischer,
Was the iPhone dropped, or show signs of having been dropped such as a dented case?
It sounds like he was quoting you the accidental abuse repair cost for an 8GB iPhone. This link explains the pricing:
http://www.apple.com/support/iphone/service/faq/#warranty7
Hope this helps,
Nathan C.

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