That phone looks so dusty and dirty! The bumper only makes scratches on the side from excessive pressure....like the kind from keeping the phone in your pocket with tight jeans. You can go get some Ghost armor and put it on the side to cover them up.
http://www.ghost-armor.com/Apple/662.html Try to locate a kiosk near you in a mall. Go get some micro fiber cloths from Bed/bath/beyond and clean your phone daily...(am I wrong about a dirty phone)? That earphone jack looked like it was full of lint. If you get the ghost armor (or similar product) put on the sides, that will protect it. To many, the iPhone is just a phone. For me, it is a jewel. I hope Apple will cover it for you. Did you buy applecare+? If you were to accidentally break the phone, it will only cost you $49.99 to replace it.