Hate to say it but he is right and Apple deserves to be sued. I have had all of the same problems and have been working with Apple for over a month without a fix. I am on my forth iPhone 3G all of them have the same problems.
I would sign up in a heartbeat. I also live in NJ.
The advertising from Apple was twice as fast (it clearly is not) and half the price (NOT AT ALL TRUE). The 3G sucks, the price is higher not lower as you need to include the contract in the pricing. They charge more for 3G data plans and it barely works. You end up using Edge anyway.
Crashing apps and having to restore iPhones has become part of ownership.
You can say just return it, but after working with Apple for over a month trying to find a fix, you find yourself past the return date with Apple and past the point of canceling your contract with AT&T, so this is not an option form many. Do you think that they would be so nice to return all your money? Forget it, they still are denying the problem exists to any more than a few users.
One of these lawsuits will probably stick and the check book will come out. Sorry they deserve it. And I am a stock holder. I am very disappointed in Apple lately.