It's pointless to try to debate secondhand information from reviewers, some guy who went to an Apple store, or what someone says some Apple Genius told them the other day at lunch. Everyone has read different things, and there is probably a lot of misinformation and improper conclusions at this point floating around.
But this is what you can do. If you have a defective unit, try viewing the test images and video (especially the video!) in this thread. I think there are 'original' and 'adjusted' videos, so you have a control to evaluate against. Regardless of whether you agree or disagree with Bob's theory, the simplest way to evaluate it is to test your own unit with these images, not debate about secondhand info.
All we can do right now is observe the results on our own personal units, and post back with YOUR results (forget about anyone else's for now.) This is more important than debating theories based on insufficient, contradictory, and anecdotal information.
If you have a unit to test with, I think it's important to note-
1. Are you able to view your iPod Touch screen DIRECTLY with no negative black effect with the adjusted video?
2. If so, how good is the contrast on your iPod Touch screen? Are the blacks really black? (ignore what you see on a computer screen, these test images are designed to simulate a remapping of display values for the Touch.)
I'm not too concerned about off-axis viewing, because that's a whole 'nother can of worms- off-axis viewing is suboptimal on all screens. What is important is whether we can eliminate the negative blacks when viewing the screen directly, and if so, is the corrected image still contrasty.
Thanks