Anyway to get iTunes 'song merging' on an iPod?

nope, 'fraid not. :(

It's a pitty, I assumed this feature would be included in an iPod, Apple is usually very good at thinking of everything. Perhaps on a later model (maybe iPod Photo even?)

Your only option is to join the tracks you want to export to iPod as one long song with crossfade included.

EDIT: Found this discussion in iPod Hacks.com, thought you'd be interested.
 
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