I went through 5 (five) replacement. 6th iPad was /is perfect.
As far as the warranty system is concerned- there is no SYSTEM PROCESSING limit, the system will accept infinite returns within your warranty period, essentially, the control is at the store level, and they know you, if you keep going to the same store, they will give you this attitude because they don't want you to use up all their replacements.
I got that line from the Covent Garden store after using 3 replacements, all of which were clearly defective between stuck/dead pixels, dents and scratches on the back from replacement units, they admited themselves that they did not understand why all their replacements had problems. I ended up accepting their last in stock replacement a week and a half ago with 3 dead pixels. Why is this my fault? am I OCD to accept a unit with defects? I didnt pay apple within tolerance, why the heck should i accept a defective unit "within tolerance".
I booked with Regent Street and got a new guy, and showed him dead pixels, he processed my 6th ipad (5th replacement) with zero hesitation or mention of all the replacements I got. I was ready for a refund, but he produced honestly a fantastic Ipad 2, clean screen zero issues, perfect build quality, as I would expect from Apple, or anyone else who I'm coughing up 660£ for their device.
Honestly, since these are LEGITIMATE build issues, and it is apparent, not an OCD thing, you can go to any different apple store with your replacement and keep getting swapped out until you get a defect free unit. Thats the way I see it, and have not had problems. Be ready to accept a refund, do not accept sub par quality, and you have legal rights as a consumer, USE THEM.
Or, you can just return it, tell apple to stuff it until they start having consistent QC.
Those of you saying OCD are accepting defective units and do not help the problem because you give apple less incentive to fix this situation by boosting their sales.