Hey Hobo, I'm one of those people who you so kindly refer to as a "luggage goon." I work for an express carrier in a medium-sized regional airport, and quite frankly I truly don't appreciate your classist comment. That being said, I may be able to help with the iPod problem.
This kind of thing does happen from time to time (from my experience it has occured mostly with passengers traveling from poor island nations, but I'm sure it occurs all over the US too). Your airline most likely has a policy which should reimburse you for your stolen property. I would contact them first. The main potential problem you could face is your airline trying to pass the buck to TSA, and vice-versa. If this occurs, definetly be persistent, but also be very courteous with whom you speak (remember, the person you are speaking with 1. deals with this type of problem all of the time and even though it is very traumatic to you, it is routine for them 2. he/she was not the one who stole your iPod). This is a good rule for any airline problem you face: the person you are speaking to is trying to help you solve a problem that someone they've never met created in some other city, so treat them with respect.
As for why bags get tossed around "like footballs," you must remeber that a baggage handler must lift, sort and organize hundreds of bags a day, and often times this must happen in a very short period of time. Furthermore, the cargo bins that you have to work in are often very small and do not afford the worker much room to manuver in very well (i.e. it's not possible to use proper lifting techniques) and as such, gently tossing bags around is a necessity. This is why you should always pack your baggage very carefully, and NEVER, EVER pack something that you cannot go without for several days in your checked baggage. (If you pack your car keys in your checked bag, and it gets lost, the airline will not rent you a car for the week, nor will they buy you medication if you packed it away in a checked bag). If it's important, always carry it on with you.
Ok, I'll stop preaching the airline stuff now. But anyways, your airline should replace your iPod for you, Best of luck.