Apple comes through after phone defect
After realizing that my phone just wasn't going to be the same (read: I couldn't delete my web history!). I started realizing that this dead space, which seems to be a general problem resulting from extended use, was actually effecting my normal use. Because the dead strip occurs all the way across in a horizontal bar, it rendered any delete feature inoperable because of its placement in the UI. Scrolling was also negated when I hit the dead zone and would automaticaly select the last value touched. similarly the keyboard, while still operable, was difficult to use since I could now only touch the top of the button.
After explaining the problem to friends the advice was always the same. Take it in to Apple and see what they could do. Since my warranty had expired some time ago, I was certain to get the shaft on this one. However, as my title implies Apple did in fact come through. After a 10 second demonstration of the defect, an Apple genius took my phone, did some searches through what I imagine is their Resolution software, and announced that my phone would be replaced at NO COST. Sweet success. I imagine that they must have a backlog of G1 iPhone that they're now hording for just this purpose. Instead of selling them off, they're leveraging the extra stock to take care of the customers like me who paid a good deal of money for a cool phone.
I just finished restoring the phone and every thing with an exception to my ActiveSync account is working great. This is the second time I've ever visited an apple store and once again walk out enthused about the service. I need to go buy some stock...