I might have to go this route. My 6G nano's sleep finally gave up the ghost. It was on its last legs anyways, but after 2 months of glitchy, the button no longer works.
I had been thinking about taking it in and seeing if the Apple Store would consider replacing it under the battery replacement program for $59. Otherwise, the an out of warranty repair is $79. That's too much to pay for an 8GB 6G nano, I think ... especially when a brand new 16GB 7G nano goes for $145 (plus a $15 gift card) at Target.
I might have to troll craigslist around here to see if anyone has an old 1G nano for sale. Maybe hit a few yard sales.
I did test out the 7G nano the other day regarding it's compatibility with Nike+ gear. The 7G can connect to a Nike+ footpod sensor without the need for the 30-pin receiver. Also, the 7G is compatible with the Polar Wearlink+ Nike+ heart rate monitor. These were the two biggest stumbling blocks for me not getting a 7G, so I could go either way. I do agree about the clip, however.
ASIDE - I really wished they kept the 6G form factor, but added the BT and built in Nike+ receiver. That way, I could use it as a Nike+ fitness watch with BT headphones. Cords and dongles ... no more.
ft