Perhaps it could but not in this case. I'm going to go with faulty hardware and here's why. I have tried the following:
Action.... Rationale
- full reset ... installed too many
apps and corrupted OS?
- full reset and
reformat memory card ... corrupt file
system on mem card?
- full reset and
don't use a memory card ... defective
mem card? new sim card ... bad sim?
- full reset + new google account ...
bad data in google account?
- full
reset + original google account but
do not activate any location
awareness ... suspect GPS issue
In each case I can get the phone to fail in 5-45 minutes and usually within 20m as long as I'm tranferring some data via 3g (youtube, downloads etc).
So, since I have swapped out everything except the physical phone hardware the problem must lay in the device itself. Glad there's a manufacturer's warranty