All I can say is that I am really disappointed with how Apple is handling this situation and their solution. If they are sending out refurbished 1st generation Nano's then shame on them. According to a site that covered the Nano recall it states that Apple will be replacing the 1st generation for the newest Nano model. http://www.dailymail.co.uk/sciencetech/article-2062147/Apple-iPod-Nano-recall-ea rliest-model-If-new-free.html However reports from people are stating that they recieved a refurbished Nano. This is either false representation from Apple or poor reporting from Daily Mail.
I would add that the reference to charging up to $100 for diagnostics be just an oversight from Apple when emailing the customers who are involved in the recall. It is poor business to consider charging customers fee's because of their faulty product. To take it a step further $100 can pretty much get you a new one. I had purchased 3 Nano's at the same time. Two of them worked fine to date and the other one just died (probably having something to do with this recall). When I saw the fee's associated with repairs I decided to replace mine with an Itouch. Which is horrible considering I threw my broken Nano away after two years of it lying broken in a junk drawer.
The bigger question I have is how long did Apple know about this? Maybe they were hoping that of all the models out there that people either upgraded or simply threw away their broken Nano's. Seems like there was the possibility of replacing them with newer Nano's until they realized how many they might need to replace. Because let's face it that they knew by the seriel numbers that these Nano's qualified and it shouldn't take 6 weeks to replace it. Heck they recieved one of my Nano's the next day in the mail. If you buy something at a store and it breaks they don't give you a refurbished replacement. They give you a new one of that model or a new similiar product if they no longer carry the product.
The true answer to what kind of customer I am going to be with Apple will be defined when I get the replacement in the mail. If it's a new one I will applaud their company for holding true to good business practices. If I get a refurbished one (USED) then I will never purchase another Apple product again and encourage my friends and family to do the same.