He's giving you all a bumper that costs well under $1 to make. That's it. He STILL refuses to accept that the design is flawed, and even goes a step further and compares it to "the rest of the industry"
People want a phone that works well. What Apple admits about the design and whether it is "flawed" isn't that relevant to most people if it can be fixed with something they're giving away for free. I bought an iPhone because I like what it does, not because it wins the award for least flawed design ever.
I certainly thought that Apple admitted the design problem just fine - otherwise you don't give away free cases. But some of you won't be happy until Steve Jobs commits ritual suicide out of shame about the "flawed" iPhone.