Can I exchange my older version iPod for a newer one?

I have an iPod touch 3rd Gen, 8GB.
It's really not that old but it seems that every time I sync it to my computer I'm being told that less and less apps are applicable with my iPod. Over time I know that my iPod is probably going to be obselete which upsets me because I've fallen in love with it. I'm also running out of space on my iPod so I figure it's time to upgrade anyway and was wondering if Apple had any sort of program where they let you send in your old iPod and maybe lessen the price of a new one or something of the sort.
I also have an old iPod nano that has some water damage and everywhere I went to trade it in, it was worth nothing. I can live with that fact, but if I trade that in or something that would be nice. If not, it would just be ideal to have a working iPod.

I have an iPod touch 3rd Gen, 8GB.
There never was a 3G 8 GB iPod.  You actually have a 2G iPod Touch.
You can bring your current iPod into be recycled at your local Apple store for a 10% discount towards the purchase of a new one.
http://www.apple.com/recycling/
Since the iPod Touch is still functional, you might be able to sell it on eBay or similar for a bit more cash that you could use towards the purchase of a new one.
B-rock

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