I have been badly burned by multiple devices in the past.
1. Sony K810i (7 years back) - found out speaker was damaged 5 days after purchase. As @riginal
pointed out, I was at a place where I cannot return the device the moment I walk out of the shop. By the end of one year, everything except battery in that phone was replaced. I had bought that model several months after it was released.
2. HP DV5 1015TX Laptop (6 years ago) - replaced display 3 times over a 1.5 year period because of the same issue. Lucky that I had warranty extension.
3. Asus TF700T - If I see the guy who tested it, I will hit him with the tablet until it breaks. I am not joking.
4. Nexus 7 2013 - replaced speaker 2 months after purchase.
5. Dell XPS 9530 Laptop - paid $2000 and got a machine that makes whining sound, throttles games to unplayable FPS.
After these kind of experiences, when I got my Nexus 5, I returned it without zero hesitation twice - first because of the yellow tint and second time because of the dead pixel. There should be zero tolerance when it comes to devices. I pay expecting a fully functional product. I am not paying to be their tester. Its high time companies are penalized for releasing defective units. If they can't ensure consistent quality, at least I should get a full refund even if it is after 1 year.
If the companies cannot guarantee that there would be defects during the initial launch period, either they should offer extended warranty with the guarantee that if its a factory defect, we will get a new phone no matter when it was reported.
Edit: Added item 2.