They'll recycle not only their own iPods, but also any cellphone. I've probably got about three version of cell phone lying around somewhere.
They'll even provide the shipping materials and pay for the shipping. Pretty cool, huh?
Now, it may be perfectly true that they'll do something with these returns...re-purpose or re-furbish them, be able to monetize the scrap materials... but so what? What are you doing with those dead devices?
Call me a fangirl, but I think it's cool.