Macs are premium products that should come with premium service/support. If i own a top-of-the-range BMW M5, and i have a major problem with it, i expect my dealership to jump through hoops to satisfy me.
Im not agreeing or disagreeing with your post, Apple probably should have replaced the laptop even though it was out of warranty...
But your comparrison is flawed.. I garauntee you if your BMW is out of waranty and it has a problem, you will see a hefty repair bill.
Premium products does not mean it comes with premium service/support, usually you have to pay for an extended warranty for that. Most companies would probably do the same as Apple did. Although this is a special case cause it was a known issue that nVidia was paying to fix, so Apple should have just avoided this by fixing it (Although it kind of seems like the guys problem was he wanted a whole new laptop which I could see Apple fighting)
The real thing here people should realize is that this is a rare case for Apple customer support, most of the time they are willing to help someone out with and out of warranty product for free (including replacing devices).
The fact is this laptop was 3 years old... a lot of use and wear and tear can happen to a computer in 3 years, especially a Laptop. Theres a chance something besides the graphics chipped was dead.
Either way, this guy did not deserve to get enough money to buy a new laptop, he merely should have one enough to cover repairs. This really makes it seem like he refused repairs and sued because they wouldnt let him return is macbook for a full refund or replacement.
Again, I dont think Apple was in the right here, but its doubtful any company woudl have handled it any differently.