I'll tell you how it's a bad design:

�The buttons are practically touching. Someone already pointed this out, but there has to be more space between the buttons
�More space around the buttons and scroll pad. No space for actually holding the device except on the sides which makes it very difficult, if not impossible to...
�Operate the device with one hand. With no arrangement of the interface elements to allow comfortable movement of, say, a thumb between the different elements without obscuring or accidentally contacting another element, you will need two hands to efficiently operate the device. Apple put a good amount of time into the design of the first and current iPods so that they could be operated with one hand, while leaving the display clearly visible during operation.

My opinion, apple will stick with a symmetrical design for the next, MiniPod (that is, if it happens)