The argument behind entertaining huge fines or damages in tort cases is that it acts as a deterrent against future violations of the law. If the damages were only $10K then Apple would have less incentive to create safe software and fix bugs like this one. If the damages are a potential $1B they will take the issue seriously. It is fine when the defendant is a huge company like Apple IMO.
They provided video of someone they claimed was this kid. But it was actually someone who apparently used a stolen or counterfeited ID. And not really even that. It was likely someone who their facial recognition system matched with someone who had used that ID.
Maybe I'm just naive, but I doubt that people typically get arrested based on such iffy identity theft. It wasn't a photo ID. And such ID is typically useless for legally meaningful authentication. It won't get you alcohol when you're underage. It won't get you a bank account. Or a drivers license, or even a replacement social security card.
