So when Sony adds a new software feature to their TV sets that, say, controls volume automatically, should we all expect Sony to come out and update our three year old TVs with the same features? Hell no. If you want those features, buy a new TV.
It's like a bunch of Jaguar users getting all in a tiffy over the fact that Apple won't release an update and let them use FileVault too. When Tiger comes out, I suppose we can all bitch and moan about how Panther users should be able to use SpotLight and Dashboard as well, and get upset when Apple won't add those features to our older OS.
Doesn't matter if it's hardware or software. You say it's hardware. I say it's software. It's actually a combination of both. You don't know whether or not the software will even run on your old iPod -- it may or may not, but you expect Apple to put the extra time and effort into making it work on your old iPod... why? What's wrong with your iPod as it is? You bough it with a certain feature set, you were happy with that feature set, and now, for some strange reason (envy, jealously, etc.) that feature set is no longer "good enough" and you're upset that people who buy brand-new iPods have a more robust feature set than you?
I don't want to offend anyone, but I will when I say that it sounds as if greed, envy and jealously are fueling your desire for an updated older model iPod. There's no reason in the world for Apple to backtrack and add those features to older iPods. Sure, it would be nice and kind of them to do so, but they are under no obligation to do so, and they aren't "stiffing" anyone or "screwing" anyone by not doing it.