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Help HTC Desire S freeze/reboot problem

For the past two months I have been having problems with my HTC Desire S constantly freezing and rebooting - to such an extent that the phone is absolutely unusable.
This began suddenly in late June when I incurred these problems:
1. On booting some icons on my home screen change to a default android icon.
2. Many apps are missing from my app draw. But eventually, after a few minutes, the missing apps start appearing in the app draw, as if they are loading from somewhere.
3. HTC Sense UI (v.3) keeps crashing presenting me with the option to
 
I hate to say it, but have you thought about just returning it and getting a full replacement phone or another phone? The problems it seems to have is probably more than a factory reset can accomplish and you might just need to replace it.
 
I spoke to HTC about it today and they want me to send it back to be repaired. They told me that they will only send a phone to be repaired a max of 3 times (for the same issue) - after that it will be replaced with a new phone.
 
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