BestBuy finally apologizes
It took forever, but I just got a response from BestBuy. It seems they agree with my assessment that they suck and have apologized for the way they treated me. They have come to their senses and offered me a refund for the "upgrade" to my iPod. The customer service rep even agreed that ripping out the USB cable was a pretty shit thing to do. Well, at least they’re giving me a refund for all the money I spent. Not too bad I guess.