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I don't see where reducing the amount of data has anything to do with the newest I-Pods. In the X3 I could only run a 16g Nano, with the X1 I have a 64g Touch with about 30g of music. On the K1600 I have a 32g Touch with about 25g of music.
I have not had problems with either the X1 or the K1600 using the newest versions of I-Pods. I have not tried the Classic on the X1 and have no reason to try after the failures on both the X3 and the K1600.
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