that's true as i did some quick research on it. it's still necessary to charge it the way batteries should be charged (fully with no breaks in between, etc) to increase the battery life span itself. (ie- your breaks in between the ipod being fully charged is not good for the battery. i have not been much better myself since i just did the research.)
i also found out though that, since it's a lithium ion battery, the battery loses capacity up to 20% per year. so in which case my next question to shawn would be: how long have you had the ipod?
last thing i found out is what happens when the ipod is hot (if it's been out in the sun or something that gets the ipod hot). I've noticed, for my iTouch 2g anyway, that after i charge it i notice that the back part is hot. if the ipod is hot it will increase the flow of the electricity (or whatever you call it) causing the battery to drain faster. this contributes to the loss of 20% of the capacity per year. try letting the ipod "cool off" if you are using it immediately after it's been charged.