Well, for me, for example, it's easier when in bed and falling asleep, to pull out the phones which worked perfectly on my first (1st Gen 4GB) Nano. Which paused and basically shut the thing down. Now I strongly think I'm losing some battery charge as the thing continues playing throughout the night - albeit to non-existent earphones.
Plus, the thing keeps going through songs so I can't start back where I left off. And this last hassle is true in more short term situations too. It's great to just pull out and be able to start right back. I usually have my ipod in my front shirt patch pocket, in the front, so I can pause with the wheel usually. But I also sometimes (usually) have a pen or two, reading glasses, dark glasses, and my cell phone. So the pull out feature is quite useful....
Finally, the pull out feature is usefull if the phone plug gets pulled out while jogging or otherwise. The Ipod stops and when you plug back in, it's right where you left it. So, yes, I'm a bit peeved. But I'd love to hear more how normal it is, and confirmation of my suspicion that one loses battery power if it plays (which mine does) even though nothing is being driven. There's still activity - the dims screen still keeps track of what tune is on, where in the song it is, etc.
Thanks!