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As to the information itself, wow. I have never heard of a recall like this where the manufacturer states there is no possible fix and all firearms must be returned.
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As mentioned earlier, the Vector CP1 was one such pistol. They were recalled completely back in 2000, with refunds paid to owners. I wonder if these Caracal Cs will be collector items one day?
http://en.wikipedia.org/wiki/Vektor_CP1
Personally, I never had an interest in these Caracal pistols due to the fact that there were other similar (but superior and more proven) designs available when they came out (such as the Walther PPQ, S&W M&P, and FN pistols).