IPhone :: 3Gs Won't Access Phone

iPhone won't 'sleep,' requires hard shutdown.Zero doesn't work on keypad. Many other problems. Can use phone only through 'contacts.' Talked to two Apple techs, one of them Level 2. Completely reset it twice. I assume they charged for the talks.Took it to an Apple store. No attempt or offer to repair. The store didn't even try, just said they could sell a new one for $199 -- even though our ATT contract expires in 10 weeks. Not the kind of service we expect from Apple. (We use MACs, iPads, iPods and two iPhones.) Meanwhile, we're out-of-luck with a useless iPhone that obviously has faulty firmware and other failures.

Info:
iMac, Mac OS X (10.7.3), also use iPhones and iPads