The concern is valid, although they highlighted the popular iPod to get more press....
Flash sticks and other plug & run devices have our security guys worried. They are trying the latest "security-fix": a flash stick that reads your thumbprint and is only accessible after a 12-point fingerprint match.
I think it's all silly.
It is simply impossible to stop critical data from walking out the door if people are determined: burned CDs, paper docs in your briefcase, etc.
I had the unpleasant duty to check the outgoing office boxes of an acquaintance who had quit. He was grinning the whole time. The guy was not stupid: he knew he was quitting months before and no doubt had already stolen all he wanted to earlier.
The best defense? A good offense.
Someone uses IP or knowledge they stole from a former employer?
Sue their ass...