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The hot topic in the Apple portion of the internet this weekend has been the discovery of a chip in the iPod shuffle headphones. It seemed the intent was to lock in users even more by only allowing playback with this chip. The concern was that headphone manufacturers would need to pay Apple for use of the chip, thus passing the cost down to consumers. On top of that, consumers would have a smaller selection of headphones to choose from, as not just any headphone set would have the appropriate chip.

Well, it thankfully turns out that Apple hasn’t gone entirely insane, and the chip is not DRM-related. Instead, it is simply a part of the “made for iPod” specification. So, in theory, clones could be made and work, but would not be able to bear the “Made for iPod” seal. Ultimately, does it make a difference? Most big name and quality headphone manufacturers are going to want to bear the “made for iPod” seal, and it sure isn’t free. In the end, selection probably won’t be incredible, and costs will be higher than regular headphones.

This all leads to the real problem with the new iPod shuffle; it’s not that it has no buttons, it’s the fact that tying the buttons to the headphones, raising the price to $75, and requiring a dongle or more expensive headphones to avoid Apple’s earbuds will, in the long run, end up costing about the same as a new iPod nano with more storage space and a screen. Not that it’s bad for Apple to upsell the customer, but why update a product that may just drive away most of its potential consumers?