Unfortunately, it is most likely hardware. I had the same problem with my BB last year.
I did everything I possibly could. I took the whole thing apart and actually tried to reseat the "camera" back to the board and nothing would bring it back to life.
The good news is, it forced me to buy a new phone and now I have a G1.
Since you've already voided the warranty, why don't you take it apart again and see if you can pull the camera (lens housing, at least) and reseat it?
I haven't looked at the service manual for that so I can't say how similar the camera components would be.