Canon Repair "service"

I babied my S95.  I always kept it in a case, never took it into rough environments etc.

After 11 months it stopped working. Just died.  I sent it in to canon for repair and got the following message back:
"Corrosion has been discovered inside the unit. Unable to repair."

The estimate for what I assumed would be a waranty service is $160 (for a camera I paid $220 for new).

Question: Has anyone else had a similar experience with canon? 
Thanks!