upgrad policy

There are no upgrade or trade-in policies, though Apple now has a "recycle" option to sell iPods back to them (you won't get full price). If you were still within your 10 day return policy that Apple has, you could return it for a 10% restocking fee and buy a new one.

I say just deal with it or sell it on Ebay. Your iPod is not a dinosaur. In fact, it's probably more unique since they won't be making that model anymore. :)