There always is hyperbole in the media coverage, although I'm quite sure that you will disagree in cases like "bendgate" (which did not lead to a total cancellation of the supposedly affected device and no flood of complaints after certain sites dropped the topic either). I just find that the complete cancellation of a device generation sends a pretty clear message. And that message most certainly is not "the media is making up stories and damaging my reputation".
That's very true, the bed fate isn't an interesting case though, the number of those with bent phones again whilst a bigger number then Note 7s that are faulty, is still low, however as it transpires it seems to be the cause of these faulty screens that are the topic of a court case against Apple. So at the time it was hyperbole, but now? It may have been worth the attention. The media has been going hyperbole over the Note 7 though I think.
Why don't you think it should have been permanently withdrawn? Companies don't pull high end products out of production for no good reason. They certainly don't do it just because some media outlets have reported something negative. You said yourself when people have shared theories on the issue that Samsung don't appear to know the cause. So what do you know that nobody else does?
This issue goes way beyond a few consumers annoyed because the phone they really wanted is now out of reach. This was the largest recall in modern smartphone history and a total withdrawal of a market leading flagship device due to very serious safety concerns. Samsung were even sending out fire retardant packaging for couriers to pick these devices up! The product was taken off the shelves because it was not fit for purpose and evidently had a fatal design flaw. I think it's reached the point where everybody needs to accept that.
I think going by the history of car recalls they could have repaired the fault and Jo Public will happily still buy it. I don't pertain to know the cause, think you over reaching to suggest that. It has a fault, not a design flaw as that hasn't been proven yet. They sent fire retardant packaging most likely because no courier would carry it otherwise, in the U.K. If you send any mobile though the post or courier it automatically had an official hazardous item stick out on the packaging.