I have mixed feelings about this lawsuit myself, but some of you are oversimplifying things rather ridiculously.
The best (or worst) example is the constant refrain that dissatisfied customers should simply return their phones. Will Apple compensate you for the hours you waited in line to buy the phone? The time it takes for you to return the product? Your inconvenience at having to go without a phone after said return? Your early termination fee (and subsequent reactivation fee) if you changed carriers to buy the iPhone? Get real -- there are many hidden costs here you aren't considering.
Also, spare me this talk about how all advertising exaggerates. There is a difference between mere puffery like "best product ever" and objectively quantifiable claims like "twice as fast."
Regarding the bolded parts above: no one is entitled to compensation from Apple for these things. None of those were within Apple's control, but were completely within the purchaser's control to avoid. They aren't responsible for your decisions there. That's why your options are return, repair, replace. That's not oversimplified, that's just how it is. All these lawsuits are about is just a bunch of self-important people that feel they're entitled. They're not. All Apple owes them, should they decided to purchase the phone and therefore accept all return, purchase and warranty policies thereof, are a) a working phone, b) should situation "a" not happen or not be possible, a return for refund within 30 days, or a repair/replacement (if possible) thereafter. If neither of those can happen, they owe you an alternate form of compensation. Point is, everyone has this information available to them at point of sale.
Now, if you want to argue that Apple has to take responsibility and make sure they repair or replace broken phones, I couldn't agree more, and should they be unable to, even outside of the return period, then some form of alternate compensation is in order. But in my opinion, it seems like they're already working on fixing things, and people ought to go with those options then. Lawsuits are only needed if a) Apple can't and won't fix the phone and they b) refuse to make things right by an alternate form if situation "a" is the case.