Nope. The unit finishes synching and reports that it is "connected" and that I should "eject before disconnecting" but the backlight remains on. Neither a quick nor an extended press turn off the backlight. I imagine it would charge faster if the light was not in use especially since the content is unexciting.
That's odd. Do you have the latest version of iTunes?
What happens with me (latest version of both iTunes, iPod nano 7th gen, Windows 7) is as following:
1) plug in iPod, open iTunes
2) iPod shows:connected: eject before disconnecting
3) iPod shows: synchronizing do not disconnect (turning arrow)
4) iPod shows: OK to disconnect (turning wheel) (only 1-2 seconds)
5) iPod shows homescreen with charging battery icon and if I press standby it will go standby.
So where does it go different for you? After synchronizing it shows the screen that mine shows before? Maybe the synchronization hasn't started properly yet and you have to wait a little while longer, this can be caused if there is still a lot of music that you wanted to put on the iPod but it hasn't got time to do it yet so that's what makes the synchronization take a little longer.
Thanks for the help. I did update iTunes...not sure I like the new version as much, but as it turned out that did not solve the problem. Your post, however, gave me confidence that this was solvable. Ultimately through trial and error I figured it out. I had checked the "enable disk use" option which I think was the problem. Once unchecked my nano behaves as described above.