If my experience today is any indication then, no, Apple will not do the honorable thing.
My iPhone 4s stopped working last night so I made an appointment at the Genius Bar for repair. I assumed that since it was under warranty that they would make it right. Instead, I was told that the "liquid indicators" had been tripped and therefore was no longer covered by warranty. While everyone that I spoke with agreed that using the iPhone as an exercise tool is appropriate and normal use, apparently sweating is not allowed.
Interestingly, the supervisor at the Apple Care center told me that he never heard of sweat causing issues and that it would have taken a lot more than sweat to trigger the sensors, which is why he was denying my claim. Yet, I've read quite a few posts about people sweating and causing "water damage." Sounds like a design flaw to me. Cost me $199 to replace my 10-month-old phone.
Hope Apple did right by you.