Original iPhone: buttons not working, grey block on the top of screen

Hello, back in 2007 I bought an iPhone EDGE from one of the Miami's Apple Stores. I've been using it since then, but since last year the buttons (volume, power, silent mode) started to fail and now all of the buttons (except for the Home) are dead. I'm also having a problem of a grey "block" on the top of the screen, it doesn't look like dead or stuck pixels but just a part that stopped working correctly. If you see the screen directly under daylight then you can see it works but there's a grey block on top of that part.

Anyway, my question is if I sent it to Apple and I pay the out of warranty fee, what is going to happen, are they going to fix it? Or are they going to send me a refrubished OG iPhone EDGE? or a new iPhone4/4S/5?

Thanks.