Amazing, I joined this discussion a long time ago and am flabagasted that it has reached this level of frustration for everyone concerned. I spent a long time trying to work out whether I should jump on the Apple or Android bandwagon, I chose Apple because my wife has a 4S and it just worked (WiFi sync as well). So I got the iPhone 5 and upgraded to iTunes 6, epic fail.
Let's think about this, iOS 6 came out and busted things, then iTunes 11 came out and it didn't fix it then iOS 6.0.1 and 6.0.2 came out, still no progress.
For me this is a travesty, Apple are (were) known as a company that produces high quality, high priced hardware and software combinations that just work, well this time it doesn't. Maybe they are spreading themselves too thin with all the new products and updates that they are pushing out, welcome to the world of commercial pressure.
It is incredulous that something that was working flawlessly in previous versions just stopped working, for a flagship product like the iPhone they must have thousands of automated tests that validate these things (I assume they have otherwise we are all screwed).
Remember the path to solving an issue is admitting that you have a problem, it seems that Apple have just put their fingers in their ears and are hoping that it will just go away. If you want to keep your customer base happy (what I mean is coming back and spending hard earned cash on your expensive products) then you need to listen to them.
The iPhone was designed for people who just want things to work, none of this tweaking, resetting, rebooting and generally "playing" with your device, it should just work; and it did until the last round.
So, to any Apple employees reading this discussion please honour your obligations to your users and solve this issue.