Earlier quoted context omitted.
Lets say you buy one of these recycled phones that Apple has already deemed unfixable. Maybe it mostly works, but the screen occasionally blacks out or there's a bunch of dead pixels. Maybe the battery dies almost immediately. It's Apple's reputation that gets tarnished by this.
Then I guess we need to double-down on allowing this, in order to normalize second-hand/recycled hardware across the society. Then Apple's reputation will be invulnerable, as any random complaint about iPhones on the Internet will be counterable by "surely you bought a third-party refurb from your local recycler".
I mean, it's not like it's a completely new development, the secondary markets have been existing for centuries, and generally either you buy second-hand from an individual in which case caveat emptor, or from a firm/some sort of legal entity, in which case it's their problem to provide some basic level of customer protection, but definitely not on the original producer.