Please re-read what I wrote. I don't think you are thinking this through carefully.
I did *not* state that phones made in China are bad. Quite the opposite, actually. Apple, Nokia, HTC make some excellent phones in China/Taiwan that are very well supported. That's why they present such an all around strong value. OTOH, the off brand dual SIM models you mention do not bring the same quality to the table by any means. They are indeed 'disposable' based on their lack of build quality and lack of post sales support, so go ahead and fool yourself in thinking that they have wonderful extra features that are so in demand.
You may not have paid close enough attention on the stipulations involved when you purchased the (presumably, name brand) insurance for the phone that was supposedly water damaged. If the inside sensor turned pink it means you *did* expose the handset (perhaps inadvertently) to either extremely humid conditions or outright water (small splash from a drink maybe). That's enough to invalidate a claim. If you did *not* see the pink indicator inside, you should have used that as a point when going through with the warranty/insurance claim. Common sense stuff, really. You just didn't use information/law to your advantage as a consumer.
Regarding your comment on wifi lacking on handsets for the U.S. market, you are a couple years behind. Even Verizon, who previously locked out or simply didn't include wifi on most of their smartphones, has several to choose from. The Pre-paid/MVNOs even have some w/ wifi. Also, you do not have to purchase directly from all the carriers. ATT lets you bring in an unbranded/unlocked GSM/UMTS handset of your choice with the correct frequency bands. This also helps you avoid the mandatory data plan for smartphones. Again, it's all about being an educated consumer.