I don't own the most recent iPod, but I did have a 5G iPod and a first-gen Classic, and a relative has the 5G still going strong (even though he's been rough on it) and my Classic has survived a couple of drops, one onto concrete.
My iPhone 3G from last year is still going strong as well.
So while I don't own the most recent classic, I've had no problem with the iPods. My first-gen iPhone did have a strip of the screen go dead... about a half-centimeter strip horizontally in the upper third of the screen. I phoned Apple, they overnighted me a box, I overnighted it back to them, I had a new (or refurb) phone back in less than 7 days when all was said and done. So their customer service is tops.