This is just another way to force people to pay "The Apple Tax" when they have to replace their proprietary earbuds. They sell you the shuffle for cheap but lock you into a product-lifetime "service contract" cycle of buying their overpriced, overcomplicated earphones.
I guess Apple's mad at me that I "beat the system" by using their 1st-gen Shuffle REFURB (the chewing gum one) with the perfect pair of $5 earbuds (Phillips hs-310 that I bought a dozen pairs for $5 each when they discontinued.)
In a way this is good for me, because the flaw in their plan is easy to see. It should drive up the resale of my 1st gen shuffle,
if I choose to sell. To Apple's credit, the unit seems like it will last forever. I will keep feeding it $5 earphones. Hey, I am a cheap b@stard