No product is going to be perfect and the first batch of a new iPhone is bound to have so defective units. Hell I got the very first iPod Nano when it came out (my first Apple product) and had it replaced 5 times. Could that be annoying? Sure but with a "walk in with a problem, walk out with a new device" kind of warranty who cares? I had a 4 year warranty with Dell when I got my first laptop when I left for college. Do you know what kind of hell I had to go through to first get in touch with Boobala Boobala aka "Kevin" in India run through the same 23 questions to then talk to a supervisor who asked me another 10 questions and then we finally got to where we would make arrangements for it to be sent in. Two and half weeks later it came back with all kinds of stuff replaced that we didn't talk about and then a new problem started. Sent it in again and then it came back dead. Dealt with "Kevin" again went through 23 more questions as to which my answer was "it won't turn on, it is dead" to finally have them send a tech with a new mother board but oh wait its the wrong one. It was the mother board for a DESKTOP! The mother board was bigger than the entire lap top! Finally the send me a replacement XPS with Vista! That computer went through 2 hard drives, 3 batteries and eventually the screen completely died all within 2 years.
So do I care about defective devices? No. I care about a great no hassle warranty. Apple has got that. Pony up for AppleCare+ and you basically get the best product ownership deal out there.