As an Apple tech who has fixed God-only-knows how many Macs, I can safely say that I have NEVER seen that screen issue before. The closest thing would be a couple aluminum iMacs with a few vertical pink lines in the display. That's it. The only problems I've ever seen with any white iMac display (iSight or otherwise) is a dead screen/inverter, and those are few and far between. Almost all iMac owners? What a friggin' liar. Sorry, but a problem that, in reality, likely affects a handful of people is NOT a major manufacturing defect. Apple can be stingy on REPs (like the damned 7.01 Seagate drives or the 8600GT MBP one that's WAY too narrow in requirements), but this isn't a case for one.
And the iPod Touch issue...millions sold and ONE bursts into flame. Now, if it was a problem with the iPod Touch, she may well be entitled to damages, but really, Apple was negligent? Shit happens, lady. One out of several million is not negligence on the contractor's part (is it Foxconn?). It's statistics.