Full scale recall? Yeah, right.
Consumer demand for this product is so high that it is STILL difficult to get your hands on one of these a full 3 weeks after the launch. People will keep buying these things. Just based on economics, Apple doesn't HAVE to do anything.
Toyota-style PR crisis? No. Toyota's problem was that its cars would sometimes overaccelerate and, um, KILL PEOPLE. Apple's problem is that, if you hold the phone in a very specific, intentional way, it might sometimes lose a little bit of signal reception and MAYBE (*gasp*) drop a cell phone call. "Devastating"? These PR experts are being a tad over-the-top.
Apple SHOULD respond with an acknowledgment of the antenna design flaw. But they do not need to do a full-scale recall. They should do something like the following: extend the period of time over which you can bring your phone back for a full refund from 30 days to 90 days, or something like that, AND give phone purchasers a $30 giftcard/partial refund that can be used to purchase a case.
As for myself: my wife has had the phone for 3 weeks. She used it for 2 weeks without any case, and we were not able to reproduce the signal drop problem (perhaps in too high a coverage area: Los Angeles). She did buy a Bumper to add a tiny bit of protective rubber in case she dropped it. (She has dropped it a couple times already from a couple feet onto our hardwood floor without a case. No damage.) In San Diego, we were able to reproduce the signal problem, but only when we held the naked phone extremely tightly: went from 5 bars to 3 bars after about 2 minutes. (Oh the humanity!) I just received my phone yesterday. First thing I did was put a Best Skins Ever skin on it ($5 to cover the sides, back and front), and then slap a cheap, clear hard plastic case on it, which protects the sides and back ($1 shipped, on ebay). This is the same thing I did with my iphone 3G. We had always planned to put cases on our phones, so this signal issue would not affect us even if it were significant in our region.