This whole story is just taking on a life of it's own now. Can Apple now do anything aside from a recall to convince people to trust them again? This could be damning evidence. Time to bust out more conspiracy theories, lol.
I'll tell you one thing: I've bought every iPhone on launch day. It's looking less likely that I will buy the next iPhone on launch day. If a hardened fan like me can think that, then imagine the millions of people trying to decide between Android and iOS. Makes it a little easier? Just enough to push them a bit in one direction? Apple needs to be honest above all else tomorrow.
I think the media frenzy is a little over hyped. I don't have a single problem with my iPhone4 and know of at least 3 friends who aren't die hard fans, fixing to buy one even hearing all the bad press. So I think the whole thing about people not trusting Apple and things are just over exaggerated.