This is AWFUL.
If i'd known they'd replace my 1st Gen with a current model, I would never have sent it in for what I thought would be a replacement battery or refurbed unit with a different battery. What a ripoff.
#1, the 1st Gen is the ideal form factor for me. I can walk and listen with the iPod in my coat pocket (or even through my shirt breast pocket), change songs, scan back and forth without a glance. The current touchscreen model is useless for that purpose except to change volume. Plus it's way too small to manipulate easily with one hand, even when looking at it (which you have to do). It's a two-hand device. No clickwheel -- you've gotta swipe while looking. And when not looking, be careful not to accidentally swipe when you don't want to. Thanks, Steve!
#2, the 1st Gen Nano and the 1-5th Gen Classic have the best quality audio because they use Wolfson audio chips. All current iPods and iPhones use different audio chips, which have harsh highs and weak lows to my ears, especially with good headphones. Thanks, Steve!
As for greater capacity of the current Gen Nano, I don't need to carry around more than 4GB of music; the 1st Gen Nano was ideal. All Nano Gen designs since the 1st got progressively worse until now it's lost its original purpose.
So, thanks Apple. You sell a defective Nano battery, initiate a recall, and replace the units with a substitute that's inferior in every way but capacity.
/rant