Certainly not their first major recall -- I remember my iBook's battery being recalled as part of that exploding battery debacle. There was something with poor soldering of motherboard components, too, that affected the generation of iBooks previous to mine.

I wonder if Apple could keep costs down here by shipping those rubber bumper cases to everyone. Unless this is some bizarre feedback issue that can be fixed in software, I don't see how Apple could recall the iPhone 4 and truly fix this short of a major redesign. And I'd hate to see that happen, if for no other reason than it would seem such a waste...