People are expecting it to not fail catastrophically and irreparably after 2 years of normal use. They are expecting that it's performance would diminish gradually so they could either continue to use it for a little bit longer or sell it back for more than zero dollars to buy the latest, expensive, unsubsidized model in the wash-rinse-and-repeat cycle that keeps Apple making money.Not defending Apple, but I am not sure what people are expecting on a failure that happens outside of Warranty.
A replacement that addressed the design issue or a trade-in credit equal to the phone's value had it NOT had the design issue would be a start.
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