I find it funny that no one else that I know has ever experienced this. Truth be told, I've used this cable every single day from work to school (some days) and to home. I've always placed it neatly whenever transporting and using it.
My friend says she always get cable exchanges from Apple for free when hers start to do this, but it never went this far. Basically, it started off with the rubber pushing itself up gradually over a month or so, up to the rubber actually splitting and eventually coming off.
Not complaining or anything but just curious. Has anyone experienced this before? I'm debating on whether I should buy a $20 cable from Apple vs eBay. Also, FYI, this cable came with the phone and is the second cable from Apple (first was with iPhone 4 and the cable, now with iPhone 4s and its cable) that I've had to do this.