iPhone, all glitter no gold!

I recently had the pleasure of using an iPhone and trying to synch it with the address book. Well, that did not go quite well, so thought of taking it to the Apple store.
So we go to the Apple Store and visit the "Genius Bar". We are greeted by this slightly old bearded man, who asks us if we had an appointment, which I obviously did not, never knew I had to take one!
But he was kind enough to accommodate us, greeted us with a big "Hello". He asked us to fire up our MacbookPro which we did, connected the iPhone to the computer, and guess what? iTunes does not feel like recognizing the device. So the "genius" says, "time to replace the iPhone", and you should have seen the expression on my face? He probably did not realize that I know a thing or two about gadgets, and somewhat more about technology. So while the guy is getting the new phone, I can't resist but think that there is something wrong with my iTunes instead of the phone, so I restart the computer and iTunes now recognizes the device, I try to synch it and it does not.
But, the Apple Genius wanted me to replace the iPhone, saying that it might happen again, so he was being nice, but I thought that since he had already transferred the new phone to our account, he did not want to or didn't know how to revert that step.
So now comes the question of data, did we have a backup, yeah, we did! But we wanted to get everything off the iPhone to swap it, so he suggests creating a new Mac user account to facilitate that, which was the most retarded thing that I have ever heard, but I decided to stay quiet, did not want to interfere. We do that, but iTunes obviously kicks us out, duh!
So we are back to square one, and he asks to "just take the hit" and use the new phone. We think, alright, just wanted to get the hell out of there ASAP. We go back to the original user acount, unplug the old iPhone, put the new one in. Thing look good, soft activation required, done!
Now we wanted to restore everything, but iTunes forces you to get the update from Apple before restoring anything. Surprisingly in the Apple store which I am sure had atleast 30-40 computers, there is no proxy or web cache box or a copy of the latest updates on a disk, so I am guessing everyone has to go and get their updates from the internet. He just says with a smirk, out internet is as bad as our AC, and I just nod. Tried getting the update, 92 Mb, and it fails
both times at 90 some percent. I have lost it by this time, already gulped down a Machiato and a blueberry cake from Starbucks. So finally, he says, are you still here? That was it, I was infuriated. He then suggested us to go back to our office and try getting the update there, which I am doing right now, but the saga continues ....

Just thinking, what is the actual cost of production of a 8Gb iPhone to Apple? They don't seem to even give a second thought or use the least amount of brains to solve a problem, they just replace your hardware, this is actually worse than Microsoft, wherein we could atleast soft or hard boot our computers and have them back to life.

Apologies if I was too sarcastic, but I guess the truth always hurts ;)