This is part of Apple's iPod Pricing Strategy....not only does it allow them to maintain high profit margins year after year, due to fixed rather than variable costs for their componentry and an electronics supply chain that allows them to use off the shelf, non-proprietary components at a low price, but it allows Apple to retain a level of "prestige" amongst their customers.

Accept it, or buy a substitute product from one of their competitors

/strategic marketing mode off