Why can't I buy the Ipod 2.2 software update and Itouch/Phone applications?

Why cant I buy the new touch update and applications with money from an itunes giftcard? I bought a 25$ giftcard from max hoping I would have the 2.2 update and a few applications minutes from the purchase.
Now im being told by technical support that I need a credit card set up on the account to buy the update and applications. What a rip off. Now im left with an Itouch that doesn't do what I want and even when I get a credit card on my account to get the apps I will have 25$ dollars which I have to spend on there Itunes overpriced crap songs.
I will be trying to get a refund on this but I just want to know how does this inconvinence for the consumer at all benefit Apple? Is it because a gift card is a predetermined purchase thus making it less likely for consumers to spend more?
To top it all Itunes does not even have a customer support phone line. What a disappointment.

More info: "iTunes Gift Cards Terms and Conditions" (Canada)
"This card is redeemable only on the iTunes Store for the Canada. To redeem this card you must have an iTunes Store account, subject to prior acceptance of license and usage terms. To open an account you must be above the age of 13 and in Canada. The iTunes Store requires iTunes 6.0 or later (7.0 or later for video), compatible software and hardware, and Internet access (fees may apply). Not redeemable for cash (except if required by law). iTunes Gift Cards may not be used on the Canadian store to purchase applications and games."

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I click the 'Update' button on the Summary screen, and a pop-up tells me there is a new software version. I click the 'Learn More' button, so it brings me to the update page that explains the purchase.
I click the big blue button that says Buy Now, leading me to the summary page for a brief moment before sending me to a software license agreement.
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Again, I type in my password, and this time, I click Billing Info.
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Why can't I buy the Ipod 2.2 software update and Itouch/Phone applications?

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