Ginag84, thanks for the info.
1) It is highly annoying that Apple says they never heard of this issue when this issue has been posted many times on their "Apple support" site such as this one, of which has the purpose of reporting issues to Apple.
2) If its a hardware issue, Apple should still be able to provide a software fix because we know that full reset fixes the issue at least temporarily. In other words, instead of requiring the user to do a full reset, Apple should be able to provide a simple software fix that "periodically resets" only the flash portion, and do this quietly in the background so the user does not even notice.
3) I love the iPhone but have never been impressed with apple support. For the first time in 4 years, I am starting to seriously consider alternatives to the iPhone based on this issue which Apple still seems to have "never heard of" and is providing no planned fix for.
John, B.S.E.E.