Serious OS 3.1 problems cant even sync iPhone 3G

I have an official, legal, etc. iPhone 3G 16 GB. I paid over USD 500 for it less than a year ago (from Argentinas Movistar).
For almost two weeks Ive been unable to consistently pick and originate calls.
Battery went from several days to 12-18 hours on stand-by.
Ive tried turning on/off network settings, uninstalling all apps, etc. -- problems are still there.
Today iTunes stopped syncing with an error message: cant connect to iTunes Store.
Ive been an Apple fan for several years buying several computers, iPods, displays, network products, etc. both for myself and family.
iPhone OS 3.1 has been my worst experience with Apple products so far.
As of today iPhone is crippleware. The whole point of OS X being the right mix of open source + UI is no more.
These untested updates while being unable to rollback OS releases, the failure to provide a timely response, the whole lack of features (like 3G tethering and Bluetooth), etc. feels just like being a Redmond hostage.
Youre about to loose me and many others like me, Apple.
Please reconsider these iPhone strategies and stop doing evil.
MacBook Pro Mac OS X (10.6.1) iPhone OS 3.1