The Australian iPod technical details remind us that:
Your iPod comes with single incident telephone support for the first 90 days and a one-year limited warranty. Purchase the AppleCare Protection Plan for iPod to extend your service and support to two full years. Only the AppleCare Protection Plan provides you with direct telephone support from Apple technical experts and the assurance that repairs will be handled by Apple-certified technicians using genuine Apple parts. For more information, visit Apple support or call 133 MAC (622).
So go ahead and spend A$598 on your iPod, and then spend another A$99 to extend the protection to two years. Just expect to be talking to them in 13 months' time when it starts decaying and buying something else in 25 months' time.