The Readers Digest condensed version of the story is that a 69 year old woman bought an iPad 3 from an auction of lost property items left at Sydney airport, only to find after she won it that it was activation/iCloud locked.
Apple won't help and say "it should never have been sold like that". The state consumer organisation won't help and say "guarantees under consumer law do not apply to goods purchased at auction". The auction company won't help and say "some of this stuff may be good for parts only" and she should have attended a viewing day before the auction where they charged and tested digital devices.
I see the logic behind locking devices so they are less desirable to thieves, but this woman didn't steal it, and the people she bought it from didn't steal it, and the person who lost it probably claimed on their insurance and replaced it, so I'm a bit surprised that Apple won't help if she can show proof of legitimate purchase. Oh well, buyer beware, I guess.