Ipod Nano 6th Gen damaged Apple won't repair...any options?

I have had my Ipod Nano 6th gen for about 8 months and used it religiously during work outs...unfortunately I sweat a lot and apparently this will damage Ipod Nano to the point that Apple considers this to be outside the guidelines of normal manufacturer warranty.  I am a little frustrated by this as I spend a fair amount of money on Apple products every year.  Any advice on what I can do other than just sell it as damaged on eBay?

The best thing to do is consult Genius Bar. But as you have already said Apple does not honor the cause of damage and therefore not eligible for replacement. I recommend to visit an apple technical support to confirm the initial assessment.
You can try the out-of-warranty repair and determine how much it will cost you to repair. But try to weigh in cost of repair vs. a new replacement. Here is apple's statement about out-of-warranty repair.
If you want to set up your iPod for the Out-of-warranty service, we recommend that you take your iPod to a local Apple Retail Store. Alternatively, you can contact Apple Technical Support.
For more details, please refer to the Repair Pricing tab on the left.
If Apple determines that an iPod is not repairable, for example, if it has failed due catastrophic damage or the iPod has been disassembled into multiple pieces, then Out-of-Warranty Service is not available and the iPod will be returned. Please see Apple's Repair Terms And Conditions for further details.

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