iPhonr 3G Replacement Questions

[superstrikertwo]

My phone is having this issue where it will heat up randomly it get's so warm that I can feel the heat in my pocket. Now I realize they get hot but this happens even when it's sitting on the table doing absolutely nothing. I called AT&T about this and in order to get a replacement from them I would have to pay a 10% restock fee and then buy a new one they suggested I call Apple because it's still under warranty. After reading through this

http://www.apple.com/support/iphone/service/exchange/

Section 4C has me a little worried

C.
Under what circumstances would Apple charge me the Replacement Value?
Apple will charge you the Replacement Value either if Apple does not receive your original iPhone 3G within 10 days of shipping the replacement to you, OR if Apple receives your original, determines that is not eligible for service under the warranty or the AppleCare Protection Plan AND it is not repairable.

An iPhone 3G that has been submerged in liquid, or an iPhone 3G that has suffered catastrophic damage—including damage that results in the iPhone 3G separating into multiple pieces—are examples of an iPhone 3G that is not eligible for service and not repairable.

Does this mean if they can't find anything wrong with it I'll have to pay the 199 for the replacement? I don't really see how it would be fair if the problem happens randomly and they can't reproduce it.

Anyone have any input on this? I would typically just call them but it's after hours

Edit: Dang it just realized I put iPhonr in the title should be iPhone obviously.