Unlike NiMH and NiCD and losing voltage and raising internal resistance, LiPO and Lithium Ion batterys lose capacity every cycle. Even so, LiPO and LiON batteries are some of the best battery tech out there.
I use LiPO in my professional rc cars where a 5000mah 2 cell LiPO will be drained anywhere between 10-30 minutes running modified class. You have to watch where the batteries come from. Some get 20 cycles before the capacity drops, but from the good mfgs, you should get 200-300 before capacity starts dropping. Also, if your battery won't hold a charge anymore, dont keep it!!! Thats utterly dangerous.
In the rc world, if a battery gets puffed up or we have to toss it because you can't put enough energy back in, you slice open the cells, and drop them in a 5 gallon bucket of salt water for 1-2 weeks, then toss in the trash (don't worry, its completely safe then)
I need to research which plant Apples cells come from. I believe there are only 3-4 great quality manufacturing plants, some are acceptable and some are even completely dangerous. Just imagine how much energy is stored into these things. The fires are quite fast and fierce, but usually over pretty quickly.
Lipo Fire Link
Actually its not the most dangerous, its just a different type of "explosion" NiMH and NiCD are like little grenades, but can take more abuse. I had to toss a soft case lipo because I picked it up with to much force (squeezed too hard when pulling from my vehicle) I made a dent in it with my fingers. That was a $100 battery that I had to dispose of after only 3 cycles.
LiPO Wikipedia Link