So no choice but to send it in for repair, huh? Or maybe it's saying I should get an iPhone 4 ^_^

All I can try and do is compare your syslog to my 3GS with working wifi. I won't find time to do that until the weekend (and then maybe I still won't have time). Maybe something will show up in a more detailed comparison.

Here's an interesting development...I used PdaNet to generate a wifi hotspot--just for the heck of it--and it worked! My other wifi devices can see and connect to the iPhone hotspot with no problems. Could this mean it's not hardware? Are there separate antennas for transmitting and receiving? If I can send a wifi signal, why can't I receive?

The plot thickens...

Then it's likely not hardware.
Have you tested with multiple wifi routers?
When you restored the iPhone, did you set it up as new?

Yes, set up as new, tested with multiple routers. I did forget to say before, though, I thought it was connecting properly. It wasn't! My other wifi devices were seeing the iphone hotspot, connecting successfully, but not able to utilize it. So fail on my part there. Could still be hardware then?

Originally Posted by Zak0Zak0

Yes, set up as new, tested with multiple routers. I did forget to say before, though, I thought it was connecting properly. It wasn't! My other wifi devices were seeing the iphone hotspot, connecting successfully, but not able to utilize it. So fail on my part there. Could still be hardware then?

It is hard to say whether or not this is a hardware or software problem. You would need to do more testing to try and eliminate the software as a problem.