Is it totally useless? - as its currently what i plan to use with my new 60 gig ipod... but it seems everyone else is buying third party ones or using the invisible shields.
I use the case. While it's obviously not the greatest, it does keep the iPod from getting dirty or badly scratched. It's made out of neoprene, so it feels and looks like the armbands. It works fine for me, but that's an opinion. Try it out for a while, and if you don't like it, ditch it.