I recently dropped my HTC desire down the toilet. It still works although the battery life has rapidly decreased. Will replacing the battery solve this problem? Both indicators are still white.(haven't been able to check the 3rd) help.
Unlikely. I would suggest the bowl of rice trick, but to stand any chance of working that should be done after pulling the battery, and immediately after dunking. And certainly with no switching on in between.
Any damage is most likely done by now, I'm afraid.
Important Rule: If a piece of sensitive electronics gets wet, don't
switch it on to see if it still works. Dry it out first.
Here's a picture of a video card taken out of a PC that got wet last weekend where I work. The green furry stuff is copper oxide caused by electrolysis due to having power present whilst wet: