Ds dropped his 3 day old Ipod touch 4 today. From a height of about 2ft - I saw him do it. I didn't think anything of it until ds picked it up and started sobbing. The screen was shattered. I was surprised as I've had two iphones and dropped them from higher with no ill effects. The ipod was also in a protective case and it landed case side down (ie screen side up).
Booked an appointment today at the Genius Bar at Apple on Regent Street. The person I saw said he sees loads of these every day all with shattered screens. When I queried why they weren't as robust as iphones I was told that Apple sell loads every day and it didn't matter that they shattered so easily! 
It will cost £82.50 for a replacement ipod. The screen cannot be fixed. The entire ipod has to be replaced. There is no other option. It is not covered by the warranty. There is no warranty I can buy that would cover it. The appointment was supposed to be for 10 mins. We were done in 2. The ipod couldn't be replaced in store because it has an engraving (from Father Christmas!). I have to send it off but he didn't know the details - he told me to check on the website!
His manner was so offhand that I thought I'd ask on my way out about giving customer feedback. I was introduced to a manager who confirmed everything he said but apologised for his manner.
I asked the manager about how I send the phone away for replacement, how long it would take etc. She said she didn't know as she had never known anyone do this. 
I went to the store tonight to buy an Ipad as well as to sort out ds's ipod. I left empty-handed but with a conviction that I won't buy an Ipad and I won't replace my iphone with a new model when my contract is up next month.
The thing that surprises me most is there is no insurance I can purchase that will cover a cracked screen and Apple employees acknowledge that the Ipod Touch 4 is particularly fragile. I will pay to replace ds's this time but if it is dropped or damaged then that is it. That and the lack of helpfulf customer service means my relationship with Apple is at an end.