Why is my Wifi access greyed out?

I have been trying to help mom with her WiFi access on her Iphone 4s. It used to work fine. Now all of a sudden the Wifi access is greyed out so she cannot get Wifi. This is a huge problem because we FaceTime to see each other and now we can't.
She took it into the Apple store and was told she would need to pay $200 to have it replaced because they can't repair it; I've been on line and noticed there were thousands of complaints about this issue so I'm wondering why it can't be fixed. Is it a problem with the hardware and if so why won't Apple fix it?
Has anyone else experienced this issue and were you able to resolve it?
Thanks

http://support.apple.com/kb/TS1559
Additional Information
If you are still unable to turn Wi-Fi on, please contact Apple for support and service options.
If no change after following the troubleshooting steps included with the link provided including restoring the iPhone with iTunes as a new iPhone or not from the backup, the iPhone has a hardware problem. Apparently this has been confirmed at the Apple Store and if the iPhone remained under warranty it would have been exchanged under warranty at no charge.

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Your replacement should have a minimum of a 90 day warranty, if replaced by Apple.
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nartal wrote:
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http://support.apple.com/kb/TS1559
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LISTEN EVERYONE WHO HAS PROBLEMS WITH WIFI WHEN UPDATING iOS6
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Why is my Wifi access greyed out?

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