Andrew, that is a pretty good picture. It seems to me that these dents in the chamfered edge of the iPhone 5 are caused by some kind of automated part on the assembly line. I imagine thousands and thousands of phones being robotically moved and packaged, and there being some issue causing metal assembly line parts to bang against the phone. Since the device is actually amazingly sturdy (look at some of the drop tests online), I would bet that these nicks and dents are due to hard hits on the automated assembly line. You really have to hit the phone hard with a sharp object to come up with a dent like that, and I doubt it is done by human hands.
Foxconn has been under pressure to churn out big numbers, and they probably were going nuts with the machines damaging the phones. Maybe they use some kind of statistical QC, like they manually inspect only a certain percentage, so a lot of bad phones got through in the initial batches. Major mess-up for them, even if it is only a minority of phones or batches that were damaged. Entire damaged batches might explain why some people on this thread have gone through multiple phones at a particular location or geographical area, whereas others have been getting perfect phones. Remember that if they have sold millions of units, those of us posting on this thread are probably still a small minority.
Clearly Foxconn's reputation is on the line, as is Apple's, so they will get their act together relatively soon. Scuffgate will then be a footnote in Apple history. Tomorrow all attention will be on the new iPad mini and I am sure Tim Cook will start his speech tomorrow announcing how many million iPhone 5s have been sold already -- some crazy number like 10 million or more.