Ok, so as no one had responded to my question I would state IF it is a condition to receive a reconditioned phone from Apple to replace your error code 53 bricked phone, that you have to trade in your bricked phone then...
Is this to do with security? A bit probably yes, but did someone at Apple see another potential revenue stream over it? Absolutely they did. Apple could not care less about any of you, unless you have thousands of their shares, so I would almost garuntee their plan was to take your bricked phone, send it of to be reconditioned, then they sell your bricked phone on and sell you a new phone. It's a win win for them and that bottom line.
And they then just spin it as a security measure and people lap it up as displayed on this site.