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i dont like pressing buttons while i'm using the touch screen, it's confusing and sometimes i press the screen harder after i press the button.
so i'm using ihome instead (from cydia).

it can help your situation too...
 
otterbox covers mostly everything so dirt doesnt build up in the holes.
 
BSE screen protector comes with a circular piece for the home button. Though I no longer use BSE on the screen, I still use the home button protector.
 
Since it's recessed, it's unlikely to get worn in comparison to the surrounding area. My home button is naked since I got the 3G last August and it's scratch-free still.
 
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