Blackberry keypad dead?

yesterday my wifes blackberry i guess had a stroke. It didn't die because it still powers on and the roller still works in and up and down motion, not side to side.

The keypad doesn't work either, so the 'phone' is rendered useless since she cant make or answer calls. She said she didn't drop it so... what could possibly cause this and how does it get fixed?

When she bought it I asked about insurance and the ATT guy told me they dont do insurance on blackberrys because they don't consider them as a phone, but as a software package.... does that make sense to anybody? none at all.