Not at all. Good for him, he got lucky. What i do have a problem with is his misguided sense if entitlement. His legal right to a new phone had expires and he still argued that he should get one. He had the option to buy apple care and extend his warranty but didnt, and then claimed that O2 owed him a phone. His attitude towards the whole thing is what bothers me.
Why spend more money on AppleCare when you get the same broad levels of protection under the act, for free? All AppleCare really buys you is the convenience of quickly and easily getting your phone repaired or replaced. You can get the same result under the sale of goods act, it's just harder work since you tend to have to write letters and make complaints. What do you mean by misguided sense of entitlement? The OP *is* entitled to have the phone repaired or replaced as it has broken down before he should reasonably expect it to do so.