Replacement plan bah, especially if you can get the education discount. Apple hardware always has good resale value, so just get the 2 year AppleCare extension and then sell it with 6 months remaining. Some 10 gig versions are still going for $150+ on eBay.
And what sucks about the new iPods is, Apple got rid of two accessories that came with the high end models: the remote and the carrying case. This bites. So y'all might wait till August, when Apple will probably come out with a 60 gig version, hopefully with those accessories restored. Because 40 gig + $70 accesorries + $30 = price of 60 gig with the extras.