OMG I'd go postal. After making their customers jump through all sorts of undignified loops, making us scramble around like a bunch of demented People Of Walmart on Black Friday, charging luxury prices they manage to screw this up?
If Apple couldn't replace the phone on the spot, I would cancel and demand a full refund on the spot and if Apple were to give me any trouble over this, I'd go through my bank or credit card company and file a complaint for services non rendered.
THEN I would take my sweet time to decide what kind of phone I really want: See for me, Apple products are about convenience. if Apple throws convenience away by screwing up like a common low end flip phone manufacturer, there is no more reason for me to stay with Apple.
I think people easily forget that Apple is a company WE pay to sell us a product.
THEY don't pay us to put up with their marketing morass.
They only have the power we're willing to give them, so yes, fight back with your wallet.
Because absolutely NO company is too big to fail: In the end, they only exist because of customers money.