Is this really possible? If possible, is it really likely that it would have happened twice, within three weeks, in two adjacent countries, after millions of iPhones have been in service without any "random explosion" incidents for well over a year now? Is it more likely than the competing "teenager does something stupid and lies about it" scenario?
Apple allegedly offered a refund for the girl's iPod on condition that the family sign a confidentiality agreement.
Now I don't know all of the details of what happened, but this appears to be the wrong action by Apple. The replacement is without condition. The settlement is in return for confidentiality.