This is a ridiculus idea. What's even more amazing is that there are actually people here who support this. I'm sorry, but it is my own personal decision about what I do with my body and what volume I choose to listen at is nobody's business but my own. (Want me to sign a waiver that I won't sue? Fine, I'll be more than happy to).
Geez, the people who support this are probably the same right wing wackos that want to dictate and force their beliefs on every other aspect of your life. I've got an idea for them; if they don't want to damage their hearing with loud music, than DON'T LISTEN TO IT LOUDLY! But keep the h*ll out of my business and keep your hands off of my ears! (The only good thing about losing hearing from loud music is that later on in life I won't have to listen to controlling nuts like this
Also, If Apple implements this I will immediately hack the device to disable it, or if it is not possible, I will IMMEDIATELY dump my iPOD and iPhone for another MP3 device (as will hoards of others). This would be a ridiculusly dumb business move on Apple's part (and that's why I think this is just a rumour).