Yesterday Apple's Greg Joswiak admitted the Bluetooth functionality of the iPod touch 2G was intentionally crippled:
Well, they were wrong -- during a Q&A session at the iPhone/iPod touch OS v3.0 press event this week, Apple let slip that Bluetooth is indeed on the iPod touch and that it intentionally crippled it. The revelation came when some inquisitive bloggers noted that A2DP, wireless accessory control and peer-to-peer connections -- key features of the new OS -- all required Bluetooth. Apple's Greg Joswiak confirmed what many suspected, admitting that Bluetooth on iPod Touch 2Gs can be "unlocked" via an OS update.
Some are accusing Apple of intentionally crippling this key piece of iPod touch hardware as a ploy to sell its new OS. Apple is offering the new OS free to iPhone customers, but its charging iPod touch customers $9.99 to upgrade and receive the complementary Bluetooth unlock.