I'm trying to sort this out by simply considering the economics side of things. I'm sure the facts have been mentioned elsewhere here but could someone provide the following information.

1)To complete all the orders (production and delivery), what would be the typical cost per tablet to Jolla?

2)What was the typical amount paid to Jolla per tablet?

Then try to figure out how does Jolla come out ahead.

1)Blow off everything concerned with the tablet (i.e. no refund no tablet). It's done and over. Move on and let the chips fall where they may.
2)Refund everybody
3)Produce and deliver all tablets
4)Allow choice of refund or tablet.

Choice 1 is hopefully unlikely but you never know.
Anyway, assuming the money exists,
If it costs less to produce and mail out the tablets than to refund everyone Jolla may want to proceed with choice 3 Otherwise they might want to give out the refund and move on. If they chose 3 or 4 then the other thing to consider is that if the tablets are distributed they are presumably committed to providing some support which comes with its headaches...