"There was not nefarious trademark squatting"
That is exactly what is being alleged. If it were like the Cisco case where an actual product was developed and sold, then one can quite objectively expect Apple to address the issue and rectify the situation (i.e. pay up). In the Brazilian case, like the Chinese case, it appears to be a mugging of opportunity. They saw their opportunity for a payday and made the requisite minimal moves so a home court judge could put his compromised seal on the tawdry affair.
"Yes, I can say exactly that. Look at it like this: A local company creates a successful product and a huge american company with massive lawyers come in and sell an inferior product under the same name. Does the US company deserve to peddle its inferior product to consumers pretending it is the locally produced quality product?"
Successful product? Successful product? Are you blind? Apple's iPhone, whatever else could be said about it, is arguably the most successful product in the history of the world! (No, I don't own or intend to buy an Apple iPhone. I vastly prefer the iPod touch, especially in its most recent version). There is simply no way in the world that Apple intends "to peddle its inferior product" using the reputation of the local product.
"Mit der Dummheit kämpfen Götter selbst vergebens."