What is your proposed solution to the problem?
If Apple doesn't follow Chinese law, then they don't get to sell phones there.
If they do follow the law, they can sell the phones.
Those are the only two options. Where, then, do they make a difference for the freedom of Chinese? At least they can provide the best possible communication device, and hopefully Chinese citizens can use that to alter their autocratic government. You can't impose democracy on a country, it has to happen from within.
This is a technology website, not a political or international affairs website. Please take your melodrama (and yes, it IS melodrama) elsewhere.
How did you feel a couple months ago when there a flap about Google perhaps bowing to the Chinese gov. to get access to the market? If you say they should have stayed their ground but give Apple a free pass, is someone talking out both sides of their... mouth.
Talking about the politics of it all is most certainly a worthy discussion here since we know WHY they're not allowing wi-fi.