Historically, Apple tends to be pretty good on support worth the price. If something like a RAM chip is toast, they'll usually replace the board, or even the whole machine.
The truth is that you can take your apple product into any apple store, or apple certified reseller worldwide and get the same level of replace or repair. The only difference is timing, Apple stores keep a limited stock of parts, while resellers must order them in. The difference in repair time works out to be a few days.
I'm told that the next day, he went to the store and they gave him a new, top-of-the-line 15" Unibody MacBook Pro with all his data preloaded on it. I have no way of proving that this thing actually has happened (but no reason to believe my friend was lying; as he's a respected and very honest man). This is not what always happens, but Apple is rich, and they know if they treat their customers well, they'll be customers again AND all their relatives & friends would be tempted to try Macs if they knew they could get a royal support like that. So, it's not a philanthropic thing, they do it for their business, but as they're very rich they are more generous than other manufacturers.
And just one other anecdote: another friend of mine's MacBook Pro died suddenly (no AppleCare either). Sent it to an Apple Store and they changes motherboard, RAMs and HDD free of charge.
Yes, pretty much. And "genius" have a lot of leeway in their handling of people coming in. They generally seem expected to try and make customers happy as much as they can, and I regularly see comments about completely unreasonable replacements allowed by apple stores.
No one here is saying we tear down our laptops and assemble them back three times a day. But if something like a RAM gets toast on my machine, I would like to get that replaced instead of replacing the whole machine.
Why, you might ask. Its because it works out cheaper that way. And besides, I don't throw away my car if some thing little goofs up! Why should I throw away my computer.