The missing bit though is that Foxconn are breaking laws... and it's not like China have tough labour laws, they give barely any protection to workers, but Foxconn are still managing to break the laws that are there. By extension of the laws that are broken in China producing these products, many laws also often get broken by the importation of those products into western countries.
Whether the local effect of "it's better than the alternatives" is true or not, the effect of allowing companies to operate under impunity holds people down. Disbanding Foxconn, I agree, is a bit too brute force an answer, but beginning to shut down factories that are breaking laws is a start, as this would incentivise them to bring other factories up to at least "legal" status. Apple can use their money to encourage this behavior also. Once factories are operating legally, the need for corruption disappears, and then you see the dragging-up effect on other local business standards who have to compete.
While investment instead is being directed at funding corruption to allow impunity, this dragging-up effect doesn't materialise, as to compete, you must also invest in corruption. If Apple paid more for products from factories that met their legal requirements, you would start to see improvement. This is not in Apple's perceived interest.