Given that you can't play most racing games (any of them that don't offer in-game calibration) that use the accelerometer for steering, that does render the phone rather useless.
You can play them by tilting the phone a little more. Even so, it doesn't render "the phone useless." At best a court would award damages based on reduced functionality. It's difficult to see how it would be a significant sum since the phone has so many intended uses, such as telephony, internet, music, etc. If the screwed up version of Maps last year hasn't resulted in any significant lawsuits, it's difficult to see how this would.