I have had a 1G, 2G, and now 3G iPod. The first two pods I could use in lighted conditions (inside and out) without the backlight. I would have to adjust the contrast now and then, but I had no problems using the display driving during the day or indoors (with the backlight OFF).
Now I have this 15GB 3G iPod and it sucks without the backlight. I prefer the backlight in general, but I hate using it on long road trips for fear of draining the battery before I get to where I'm going. That plus the shorter battery life of the 3G's has me kind of bummed.
Perhaps I have a defective unit? Has anybody else observed this?