Why at no point did Apple identify the replacement as refurbished if it's no big deal? After reading the complaint, that fact there is a large part of the plantif's issue.
AC+ terms and conditions do say the replacement may be either new or equivalent to new in performance and reliability (the latter meaning remanufactured). What did the plaintiffs think they were getting that was "equivalent to new in performance and reliability" if it wasn't new? Newer than new?
The bigger picture that many here are missing is that Apple is not obligated to provide white box replacement on the spot in lieu of repairing the broken iPhone, but they do it out of convenience to the customer because 1) they would not have to be without their iPhone for a week while it's bring repaired and 2) they get the additional benefit of receiving a fresher iPhone with a brand new screen, shell and battery. With all other products from nearly every manufacturers, you'd be forced to ship the broken product to the manufacturer for repair.
Apple can very easily cease to provide white box replacements and start sending the customer's broken device to the depot for the actual repair and they'd be allowed to do this per AC+ terms and conditions:
(i) repair the defect using new or refurbished parts that are equivalent to new in performance and reliability, or...
And as mentioned, they're not obligated to replace the defective part with a new part either.
Bet you if given the choice between being without the iPhone for a week while their used iPhone is sent to the depot for repair or receiving a refurbished white box replacement, the vast majority of customers will choose the latter. People are just being greedy.