Do we know that the Galaxy Nexus is completely Foxconn free? Foxconn may not assemble the phone, but they make a lot of electrical components and Samsung is a Foxconn customer: http://en.wikipedia.org/wiki/Foxconn#Major_customers
Digging a little deeper, it seems some people have Nexii with "Made in China" on the back, whereas some say "Made in Korea". I suspect even the Korean phones are only assembled there.
An employee who serves you is not a slave because he makes less than you.
Where? At the government-mandated pick-a-plot-land-for-free fair?
Now whether this is actually true or not? I don't know.
I think it could be argued that this reliance on natural resources by Spain, contrasted with commerce favored by Britain, for example, resulted in the slow decline of imperial power by Spain. I think by the 1800s, Spain had pretty much ceased to be economically relevant vis-a-vis the more commerce oriented Empires of the time.
A crude analogy would be China selling to their diaspora outside China proper.
My point is that the strength of the UK economy of the time wasn't just 'factory workers', conquering a quarter of the world's landmass and nicking their stuff also helped significantly. China can't replicate this.
So instead of messing around with all of that, China's expenses are limited to building infrastructure in China, maintaining vast military forces to guard China and occasionally menace Taiwan, and converting the Chinese to some vaguely secular state-approved worldview. And they have the benefit of modern technology and the entire developed world to crib notes from. They don't have to figure this shit out the first time. A factory anywhere in the West in the 19th century was a best guess--a Chinese factory today benefits from 200 years of experience and empirical research into how to run a factory, robots, computers, a huge foreign population of people buying stuff, and thousands of Western-educated professionals. I think China has the advantage.
Also, not sure what you mean by world war between colonies. Spain, England and France had numerous colonies, but didn't abandon them when warring between each other. Germany, Austro-Hungary and Italy weren't big on colonies, and neither World War involved much in the way of colony-on-colony fighting - pretty much all things you would call a colony in some way were fighting on the side of the Allies in both wars.
Yes, someone has to actually fix the working conditions, but it's not going to be you or me, it's going to be the Chinese workers themselves. American and British workers formed unions and engaged in often violent struggles to improve pay and working conditions; some enlightened industrialists like Henry Ford voluntarily and profitably improved pay and working conditions on their own as well. The same thing will eventually happen in China as soon as the country has enough wealth to bargain for. It'll probably happen easier because the Chinese can learn from our history.
And that's working for China. As has been pointed out -- 12 hours in a factory beats 16 hours in a rice paddy. These people aren't slaves -- they are working hard to secure a better life (mainly for their children).
China is turning into a rich country. Go and watch this video: http://www.gapminder.org/videos/hans-rosling-asias-rise-ted-... and play around with the gapminder tool: http://www.gapminder.org/world/