Apple to replace any 5G iPods that exhibit hardware failure

Apple is apparently hoping to minimize any media attention the 5G iPods+video get. Due to a large number of complaints over iPod Nanos scratching, Apple has instructed channel partners to replace 5G iPods even if the problem would normally be classified as abuse. Perhaps they are hoping to prevent another lawsuit, but I would think that this would provide some evidence for the iPod Nano lawsuit against Apple. Perhaps in response to the scratching issue, Apple is providing leather cases with 5G iPods and seems likely to do so with the iPod Nano in the future. This would imply that Apple will settle the lawsuit and provide iPod Nano owners with another Nano (likely refurbished) and some sort of case.