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If it's within warranty then they will replace it without any problem. If not then you may as well ask them.
They power supply is well known for splitting there and several have been blamed for setting MacBook's on fire.
I'll wait and see what iPhone 4th gen has to offer and by that time I imagine Android will have progressed enough to be a true competitor, for now I feel it falls short of the iPhone but only by a little. I'm sure there will be some better handsets than the Nexus One available too.
Re: iPhone "must have" apps?
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Free WHMCS...
No but it makes a more attractive option for someone to buy a brand new handset than a used one. My white 3GS has a hairline crack at the side of the dock connector and I'm waiting until the new iPhone is released until I get this one replaced.
Replacements come with either a 90 day warranty or are covered by the 12 month warranty of the original phone if it had more than 90 days of coverage remaining.