Agreed, and they don't want to... Apple's cash is much more useful to Apple wherever it happens to be. It's the shareholders who want the cash, which in a lot of cases means repatriation.
I think you misunderstand me. The existing cash pile would remain untouched and therefore would not be subject to any taxes. The preferred shares would earn dividends from Apple which would be paid out from free cash flow. It's a tax efficient way to deliver shareholder value without taking the tax hit like they would if done in the traditional way of a regular dividend or buybacks.
This is just one method of course, another way is to issue debt in the US and use that to repurchase shares/pay dividends. The board will determine what the best way to go about it is, as there are pros and cons to both.
