Not All iPods Full of Illegal Music
Apparently the Canadian courts think so as well. The unofficial apple weblog reports that the levy proposed against iPods - the so called "iPod tax," has been defeated. It's a good thing too, with a $5 to $75 tax on iPods depending on their size, wow, no wonder retailers were pissed.
It wouldn't have worked
If iPods are suddenly $75 more expensive people are just going to turn to one of the many easier and lazier places than a physical store. You've heard of it - the internet. I'm sure Amazon, eBay, and any other online store that sells iPods would be pretty pleases if this tax went though. This is also the reason that the Retail Council of Canada was the biggest opponent of this levy. Retail stores would have lost major revenue.
Even the grandparents who are scared to buy off the internet when buying iPods for their grandkids would be affected. The elderly know when they're not getting a deal - they have a lot of time on their hands. Why buy in Canada when you could take a trip down to the U.S. and get the same thing for much cheaper, without even considering the weak U.S. dollar giving up extra savings.
Bottom line - iPods aren't chock full o' pirated music, and it's a good thing the courts recognize that.