Have you taken into the Apple store? Even out of warranty, they will often repair or replace a faulty product, especially if it is a known problem. Not always though...
If you go for the Mini, there is quite a leap between the original iPad Mini and the iPad Mini 2 (retina). There is less of a leap between the iPad Mini 2 and the new iPad Mini 3, making the iPad Mini 2 a decent affordable choice rather than going for the 3.
We managed to get the original iPad...