Dumbass, it completely depends on the agreement they have with ROGERS.  ATT has an agreement with Apple regarding replacements and warranty service.  The iphone essentially becomes a Rogers product as soon as you purchase it, therefore they have a say as to where you can service it and how much they are willing to kick in for a replacement.  Apple isn't perfect but your situation is hardly their fault.  It might seem like a crazy idea but I'm willing to guess you could have found all this info out BEFORE signing away your life for 3 years.

I disagree.  The iPhone is an apple product that should have a worldwide warranty like other apple products.  Sure you must have a contract with Rogers to activate one, but out of warranty repair work has nothing to do with Rogers.  Are you implying that Apple Canada gives Rogers a cut when they charge a $200 late fee for returning a loaner phone, a few days late, to Apple in California, versus $100 in the US for the same service.  Replacement value by definition is for damaged phones not under warranty from Apple Canada.  I have no idea what Rogers would charge if someone stole your iPhone 3G and you wanted to buy another to activate in it's place.  In the US, it is $499 with a limit of 5 activations per account. I gather it might be $720 in Canada.  Is that fair?  Are you implying that Apple isn't at fault as they are doing what Rogers says?  I don't buy that.  You probably also think data rates are too cheap in Canada.