Guys its a great strategy, millions and millions of ipods have been sold and 700,000 iphones have already been sold!!!
Besides 90% never replace the battery in the iPod, they buy a new iPod thats how well the $70 fee works they say "For $40 more I can get a new iPod Nano"
Say what you will it is a good strategy for persuading people to buy new units instead of keeping the old model. It works I see it happen every day with the iPod and i suspect the same will happen with the iPhone, if not Im waiting to change out your battery behind the Genius Bar.