First, the most environmental form of recycling is for an object to be reused as is. So, if any item is given to a recycling center, if the recycling center can just sell it directly to someone else, then it's much more environmentally friendly.
Second, the credit doesn't encourage people to recycle them at all instead of throwing it in the trash, there's no verification that they've given it to a recycling center. The only thing is that after the recycling mode is enable, the device becomes a useless paperweight.
So it's an extremely environmentally unfriendly policy from a company who pretends they care about the environment.