Yes, this is brutal. As mentioned, I am never buying another Apple product again as a result of their anti-consumer marketing and sales strategies and lack of support unless you slip them some green. However, I would like to see a fix for this so that I can continue to use the device that i bought and paid for for its intended purpose, if only through WiFi. Following Apple's troubleshooting directions to reset my phone as new has caused me to lose all in app purchases including Hipstamatic (which I had literally bough and paid for all of the addon packs) and left me with no way to retrieve them.
Despite what some on this thread are stating, this coincides with a software issue and is not a hardware only issue. I paid for and own my 4S and should be able to wipe it and roll back to an earlier software version where this problem did not exist on this level. You can do this with any Android or Windows device or computer, and apple should be no different.