Matt:
AppleCare, for an added $69, covers the phone, including battery, for two years.
So far, I replace my mobile phone about once every 12 months. My Daughter is now using my original iPhone and it looks and works as new, IMO, and is running the same software with basically the same hardware as the 3G. This is my first experience with a mobile phone that has not become obsolete in one year, FWIW.
Again, the 3G battery situation is less than ideal. My concern is not with the battery failing, but with the faster draining of the battery while running 3G, GPS and WiFi
and playing games!
I can live with it, but it is a problem for many folks. I think a car charger will fix the problem, though. I may even buy one of these:
