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Oh, I wholly disagree in terms of a step backwards. The controls on this are entirely solid state — no clicking. 1st gen had 4 clickable buttons, and a moving scroll wheel. That is 5 potential points of failure. As the saying goes "fewer moving parts, fewer broken pieces."

I still have mine, and refurbished it a couple years back with a new HD and battery. Love the glowing buttons, too. Reminds me of the glow of a vintage stereo.
Capacitive buttons of that era had a much higher failure rate than any mechanical ones.
 
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