I've never even held a Fuze in my hand, but it looks to me like they're looking at it as a much better product than a Shuffle, without the extra cost/size of the other iPods...
The capacity is small enough that they're just used to having to reorganize & move stuff all the time. I got Forges for my nephews with a similar idea --but I thought they could swap in/out memory cards for more music.
You're used to 20 GB capacity --so your perspective is totally different. [You posted in "I don't need no steenking playlists..." thread??]
For the most part, I totally see where you're coming from, though. I guess companies only feel real pressure to innovate in high-end products... In low-end, they're just competing in pricing. It's ironically, what Apple built their company on, and why their "it just works," line in computer commercials makes no sense to me.
I've got a GPS navigator that stuns me sometimes, how stupid the programming on it is. The funny thing is, the manufacturer's next step up model are just as weak, in letting you choose route preferences. If I got the one that costs 8-10x as much, maybe that one would let me tell it "stay off the freeway," before it's the next turn.
I had an eBay auction close with no bids --while the auction was "unavailable to some users," including me, for the final hour. [a lot of the electronics/computers listings I see get about 75% of the bids, in the last 3 hours.] They just refunded my listing fees, 2 weeks later. I'm still amazed that I had to ask them what their policy was about it, to get them to do anything... and that they don't have a written policy for it. [12+ years in business, and this had never happened for eBay, before???!!]
I mention these, not to go OT, but because they're examples to me of companies sitting there thinking something like: "well, our customers just aren't paying us enough, to expect any better..." It looks to me like the people at the Fuze forums are drinking that same kool-aid.
Sorry I've run on. I sympathize & the whole "it's just good enough," attitude just irritates me. (This is why the economy went down the toilet, to my mind.)
Tell him about the Twinkie...