HT1414 The iPOD cannot be restored at this time

After downloading the 840mb of ios 6.0.1 software update and when i click backup i see the below screen
and when i click on Restore iPod . i see the below pop-up
why should i loose all my data before updating the software ? this is ridiculous .....and disgusting...... the new version or backup something couldnt happened .. but when  acustomer want to just upgarde the software to newer version and see this type of warnings .... APPLE will definetly LOOSE their customer base... example .. this is my last product that i bought from APPLE and i will never buy anymore.

No screen shot was included in your post.  What di the error message say?.

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