It said not to have the phone with in an inch of your skin.
That's just lawyers making an absurd requirement for the use of the product so they can avoid any liability claims for any reason that might come up. It gives them an easy out if you use the phone the way it would be expected to be used and something happens, like your battery catching fire.
One thing that annoys me when fear-mongering is made about radiation (ignoring that they confuse atomic radiation with photonic radiation) is a lack of magnitude. Cell phones can pump out some serious power if there's a poor path back to the tower (2-3 watts). I don't want that right next to my head, if I can help it, and even an inch can reduce the absorbed power significantly due to the inverse-square characteristic. WiFi on the other hand is much lower power and not right next to your head, so even if cell phones are found to be a significant hazard, WiFi is not even on the same page.
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