As a person who has had his last two iPods stolen (from Waikiki, Hawaii. The locals can tell a Thrifty rental car even without any markings, and they target them. The rental agent confirmed this after the fact, saying it happens often), I think this is a great idea! And I will be installing this on my next iPod (once I lose the sour taste in my mouth from having to pay again!)
And don't expect any help from Apple. Even though you are prompted to register your iPod though iTunes, they don't keep track of your iPod even though the serial number is stored on your computer through iTunes. I can only assume that Apple is happy that you have to buy another.
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