I'm with the OP. It's ridiculous that they don't support Panther. Many people are on a 3 or 4 year replacement cycle with their computers, and a 2 year old computer would have Panther.
To those who say "Apple traditionally supports 2 OSs," well, here's a case where they don't. The nano only ships supporting 1 Mac OS. Sure, Leopard will be available at some mythical point in the future, but as of now, Apple's only supporting one OS.
To those who say "pony up $129 for Tiger," that's absolutely insane. Why should I have to pay $129 to get my $149 product to work? For that price, I could get an iPod Touch (if it worked with my computer).
I agree that the OP should have read the system requirements, but regardless, I still think it's a mistake for Apple not to support the two most recent apple OSs in its new iPods, ESPECIALLY when those older computers still support the latest version of iTunes. Does this mean Panther will not be able to run the next version of iTunes?
One reason I can justify paying a premium for Apple computers is that they have a long life. If Apple stops supporting older models, that's one less reason for me to buy Apple computers.