I just got mine today. It works well. I don't like the sunken buttons, it is too easy to press the center play/pause when using the surrounding buttons. The raised buttons on the remote for the Apple univeral dock are much nicer. Holding the play/pause will put the Nano to sleep and wake it up - I didn't expect that! There is also a hold switch on the side that I did not notice in the photos. The cable is very flexible, not stiff like some really cheap product may have.
I got it just because I was curious, but may actually use it when out walking the dog.
A good value for the price. Not Apple quality, but not an Apple price either.