Stolen iPod...Ideas, Help, Suggestions,...Sympathy

Hi All!
Bad news and good news. I own two identical iPod Touches, one for home and one for work. The one from work was recently stolen. I have an idea who, but can't prove it. Anyway, this person has downloaded a "free" app because the A Store sent me a receipt, being as its tied to my account and all. They don't have my password so they can't download any "paid" apps thank goodness. Which leads me to ponder, why doesn't Apple require a password for ANY installations on your iPod? Also, if this is the person I think it is, they have a Windows (spit) machine at home. So if they plug my iPod in there then Windows (spit) won't recognize the Mac format I believe.
Is there a way to de-authorize my main account for that particular iPod by serial number, etc.? Maybe thru iTunes so that any downloads from that iPod will not be tied to my account.
Is there a way that you could use a Windows (spit) machine to extract a Mac formatted iPod's mojo? Music, Notes, etc.
How close do the two iPod's have to be for me to use peer-to-peer? I have the latest OS but don't have any PTP apps installed. Is there another way?
Is there any other way that this could be worse for me? I have already changed my home WiFi passwords, etc.
Now for the good news. My Plant Manager wants to replace my iPod! Great!! I'm all for that....but I still wish I could somehow nuke my stolen iPod like I can my iPhone.
Any help would be greatly appreciated. Thanks.
pwilson

Password protection was enabled about 90% of the time but there were times when I would disable it to let someone use it. I am the ONLY Mac user of over 150 employees at my plant. (Coal-Fueled Power Generation). These folks buy Zune's and such and laugh at how much I pay for Apple products, but everyone wanted to try it out and I didn't want them to hassle with a password so there were times that I would leave work and it be disabled but still securely kept or so I thought. It was stored in a locked office, inside of a locked drawer, inside of a locked storage cabinet and there was really no personal info kept on it just mainly music.
I have tried to contact Apple a couple of times but as usual am having extreme wait times....longer than my patience or my schedule will endure unfortunately. I'll try again later or email.
I am interested in knowing how easily a Mac formatted iPod can be "cracked" with a Windows machine. I am not familiar with any file restoring or recovering apps, etc., for Windows. It may not even be possible.
I do though, wish that Apple would require a password to download and install ANY app, paid or free....maybe add that feature in the preferences. And also permit an iPod to be de-authorized online without that iPod being connected. (Forbidden from purchasing or downloading any files through an Apple account.) I'll pass this suggestion along to Apple.
Thanks for the replies.

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    http://support.apple.com/kb/ts3716
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