i have to laugh - i did the exact same pattern in the exact same color...i love my headphone snugglies - but absolutely despise the ipod case. adding the final button only added to my distaste. (sigh).
The pic looks cool anyway, but yes, you must love it to want to use it. In this week's newsweek there was a big ol article about the iPod and a sidebar of leather designer iPod cases; made me feel all inspired to sew up a case for mine.