Mega is not always better
Because Foxconn has created this "universe" it is right that the company take responsibility for employees in both their working hours and their off time.
Could, should things have been done differently?
Rather than building megafactories that require dormitories, Foxconn, with the government's help, could have built hundreds of factories in the different regions where workers are available, to let them live at home and commute.
It wouldn't be as efficient. Foxconn would have had to move work in progress further between factories. But it would have allowed Foxconn to be less paternalistic, less responsible, and it would have allowed the employees to be more independent and self-reliant. And if other major employers had been encouraged to behave in a similar fashion it would have provided employees with that great booster of morale choice; of location and of employer.
Those that wanted to get away from home could still have done so, albeit as things stand only with the Chinese government's approval and an appropriate residency permit. And those that needed the support structure of their family and friends could have stayed closer to them. In short it is something more akin to the pattern I was familiar in my youth in the industrial West Midlands of England.
For sure it would have cost Foxconn more, but it would have been manufacturing on a more human scale. It would, of course, have made Pods, Pads and Phones more expensive but perhaps people would rather pay more for their electronic objects of desire to have them made under more rewarding conditions. I think I would.