My experience, also in Canada, identical.
Although the new Nano came in a box from applecare (so as usual they don't give you new earbuds or cords), it still had the serial number sticker on it, and was absolutely mint. This is NOT reconditioned unit, it is a new silver 8GB Nano. I did get the letter from Apple, but that is simply a limit being set that the warranty is only 90 days (reasonable when it's a replacement not a new purchase). That letter doesn't say it is reconditioned though, and again I seriously doubt it is.
I had and loved my 1GB unit for ages, but I just cannot understand the complaints of anyone who has a problem with this exchange. I admit that I miss the click wheel and (believe it or not) Solitaire, but this thing is 8GB in capacity, has better sound quality and handles audible audiobooks MUCH more reliably. MY battery life has been absolutely fine, although I will say that I use tapline earbuds rather than using the touchscreen to change tracks, play/pause, etc and screen use is always the killer of batteries on all ipods. I like the option to make double click of the power button into play/pause too, and I like the manual volume controls better than the click wheel actually. I don't care about the radio or Nike+, but they are all improvements over what was possible with my 1G unit, so again I can't see complaining.
I would never pay retail for one of these, they are silly in their design and the Shuffle is better value for money in a workout iPod, BUT as a free replacement for my 1GB 1gen Nano it is something I am totally happy about and appreciate Apple for doing.