It happened to my 2007 original phat model twice. I think it cost more than $100 to fix it both times out of warranty. $40 USD is not a bad price for your repair. I still have my PS3 phat and play it from time to time.
http://www.youtube.com/watch?v=F1gWECYYOSo
Please Watch/Share this video so it gets shown in Hollywood.