Apple and RIM were a bit slower at coming out with 3G devices, though I have a Blackberry Bold 9000 which came out at least 2 years ago and it is 3G. Technology is changing rapidly and if you have a phone that is a couple years old you have to expect it to be a bit outdated. EDGE will eventually be phased out.
You have a different situation. Your phone may not be old but it doesn't work on AT&T's 3G band. That was your choice. When we are spending as much as we do on our phones we have to make sure they are compatible with the network so we can get as much life out of them as possible.
Why don't you take the most expensive phone they offer you for free, sell it along with your HERO, and get yourself the best device you can find that will work on their 3G network? Hope it works out for you.
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