The Guts of a New Machine. NY Times article on the iPod
http://www.ipodsdirtysecret.com/
I'm not sure what Mike meant to link to there, but the bottom line is that batteries suck. Battery tech has not kept pace with processor or hard drive advances. They wear out, even the rechargable ones.
Also, Apple has changed their policy since that video was filmed. And replacement batteries are fairly easy to find.
That was a great article.
To mike and Maankigo:
http://homepage.mac.com/zellin/An_Open_Letter/An%20Open%20Letter%20to%20the%20Cre.htm
This thread is closed to new comments. Thanks to everyone who responded.

