Flawed and defective are the same thing. If my automobile's muffler doesn't work, the car can still drive. It's still defective & flawed, but operational.
No one is blaming the customer. Where do you get that?
Where are you getting your info that 'millions' of devices have this issue? Neither of my iPhones has this problem.
My bottle analogy was spot on. Apple didn't know the bottles were 'mislabeled'. As far as Apple knew, the 'bottles' were properly labeled to be able to handle 1.0 liters. So, when they filled the bottles with 0.9 liters and had no problem, they thought everything was fine. When they filled them with 0.97 liters, that is when they discovered the issue.
Customers that discover this hardware defect within their hardware warranty are receiving free replacements. How is that being 'cheated'?
What other product would you demand a replacement for a defect that was discovered AFTER the warranty expired? When the product is sold, Apple promises it will work properly for one year, with the option to purchase an additional year of warranty.
Did the product work properly during the warranty period?
If yes, then Apple has fulfilled it's promise.
If no, then Apple replaces the device for free.
Add in the fact that they offer a HUGE discount for out-of-warranty device replacement. Therefore, Apple is not saying to 'buy a new device at full price'. They're offering to replace a device that is NO LONGER COVERED under warranty at a substantial discount.
I don't see how you believe Apple is 'cheating' anyone.