Who has the best protection plan?

This is very true. Fewer retailers are offering replacements.

For example the retailer I work for. When I started there two years ago, we would replace any and every iPod with a true issue, right there.. However, corporate handed down a decision stating that we were losing far too much money on this process, and units were in turn to be sent off for repair at a service center.

One reason we were losing so much money, was that if our defective product warehouse tested the unit, and it even turned on, we got charged for it. Then, if it went back to apple, and they couldn't verify the same defect we did, then we got charged for that. So, either place we sent it to, we got screwed if that facility couldn't verify a defect... And considering that in my area, I'm seeing 5-10 defective ipods in a 3-day span, we were losing a LOT of money in our store alone...

Now, a lot of retailers have jumped on the same band-wagon, and are sending units off for repair.. However, many offer a quick replacement program, where rather than sending your unit off for weeks at a time, they will replace the unit with a refurbished product just like the one you have within a week or two.

I do refer a lot of customers to our local apple store though if they are under mfg. warranty.. Because from my understanding, at least at our local apple store, they are very quick to issue a brand new unit in the first year (I don't know if that holds true for other Apple stores)...

So yes, unfortunately, many places are doing the same... Sending units out for repair rather than replacing them with a brand new unit.