I’m wondering if you could just engrave into these devices that they were “reclaimed” or “recycled” so that it’s clear that Apple no longer is on the hook but people can still use if they choose to do so.
The problem for Apple isn't that people would think their refurb iPhones were new, it's that Apple simply doesn't want poor people to have them because it might hurt their sale of 700$ computer wheels if they don't seem like a luxury brand. As a bonus, if they destroy all the broken devices, repair shops have no access to replacement parts and so there's nobody to challenge them when they tell you to buy a new 1000$ phone because yours has an "irreparable" bent flex cable pin.