They're arguing that it's not designed well because it should accommodate recovering parts from phones that were knowingly disposed of without the owner releasing the activation lock first.
As parent comment points out, this could be a simple matter of the refurbisher requesting a release of the lock, sending a request through Apple, and Apple requesting permission of the phone's owner via the account it's locked to. If the phone was stolen, they click no. If the phone was given for recycling and has parts that can still be used, they click yes.
If Apple really wants to reduce waste (their next big environmental goal after meeting the renewable energy one), they could offer a $5 gift certificate to incentivize people to bother with releasing their old phone's motherboard if it's still usable, but implementing this in the first place would already cost them time and money so I'm not holding my breath.