What is the faulty returns policy for iPods?

My iPod touch has started acting up recently (home button is sticking and it wont recognise speakers plugged into the dock). I took it into the Apple store and they agreed it was faulty and offerred me a replacement. I should be picking the replacement up in a couple of days as they had to order it in. While I was in the store I saw the new 4th generation iPods (mine is a 3rd gen) and I asked if I could get one of those as a replacement and pay the difference for it but I was told Apple only exchange faulty products like-for-like. So I was wondering, rather than getting a replacement 3rd gen, am I able to ask Apple for my money back for my faulty iPod (its still under warranty) and then use the money to buy a 4th gen, or am I only able to get the replacement?

The refund period is 14 days. Essentially, you have a 14 days to decide if you like it.
A good idea, if you really want to get the iPod Touch 4G, take the "like-new" replacement, and sell it to a buddy. That's how I got from 1st gen to 2nd gen.

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    into this:
    {removed per forum guidelines}

    Hello again Sloppy_Carlton,
    I’m glad to see you are utilizing the forums to reach out to us about multiple experiences, although I am sorry to see that neither of the experiences you posted about left you feeling delighted.
    Per our Return & Exchange Promise, we may return or exchange almost everything; however, devices that are damaged would be excluded. It seems the unauthorized modification (rooting and unrooting the phone) may have been the cause of the phone not turning on when attempting to update your operating system to KitKat. We would not be able to accept this device for an exchange or return as it would be considered damage from the unauthorized modification.
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    Thank you for posting on the forum! 
    Tasha|Social Media Specialist | Best Buy® Corporate
     Private Message

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