I don't even understand how Apple sees it fair to replace a damaged/unworking/whatev NEWLY purchased iPod with a refurbed unit. A refurb unit's retail price is less than that of a new factory unit. If you paid for a new factory unit and it arrives DOA, Apple will replace it with a refurbed (possibly scratched?) unit....but you paid for a NEW iPod, not a refurbed.
I think that if you purchased a NEW iPod and Apple can't fix it, they should replace it with a NEW iPod. If you purchased a refurbed iPod that develops problems and Apple can't fix it, then they should replace it with a refurbed unit.
Maybe this is standard practice in the consumer electronics industry, but as someone who had to have his "new" iPod replaced with refurbs THREE times, I think it's a seriously sh***y practice...
-Josh