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The battery isn't considered a "consumable" in an iPod, because removal and replacement of the battery would void the warranty. The case is completely sealed for warranty voiding purposes, so they would fix it or replace it.
I don't know if the iPod is DEVO, as I haven't worn a blue shirt (or black shirt, actually, as I was a technician) in a while - but I will attempt to find out... I still have some folks I talk to when I want to know DEVO status. ;D
I WOULD assume, however, that because of the price versus hourly labor cost of repair that it would indeed be DEVO - after all, they won't repair most cell phones and PDA's, which are all in the same department and have similar pricing.
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"The power of accurate observation is frequently called cynicism by those who don't have it." - George Bernard Shaw
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