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I think it is NOT a physical defect with the Nook, but rather a problem with 1.1. Updates 1.1 and 1.0.1 both included "fixes" for wifi. Unfortunately, it seems that the fixes broke wifi as much as fixed it. There are numerous reports that while 1.1 fixed wifi issues for some, it also created wifi issues for others, including me.
I have found that if I open the full settings menu (not the shortened 4 item settings) and then open wifi - so I could turn wifi on/off, and can the list of all the various hotspots I've connected to; and then I let the Nook sit at the screen for about 20-30 seconds, it will reinitiate wifi connections. this works better than actually toggling on/off.
My wifi at home seems to give more problems than wifi at work - the issue with 1.1 seems to be tied to certain routers, and wpa2 security. You might try changing the security on your home network to wpa instead of wpa2; or even wep and see if that makes a difference. (EDIT: just re-read your post and saw you have tried some of these already)>
I'm hoping that B&N will be releasing another update soon, with android 2.2 (flash!!!!!) and more wifi fixes!
good luck
Jason
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