Keef:
I know most of my iPods were made in China as well. For example: I bought an iPod Touch for my wife's 50th last November and using Fedex's web site was able to track the package from its origin in China (Shinuan, or something like that) straight to our front door. I guess the Chinese do the engraving on the back as well!
Perhaps it was simply a matter of a luck of the draw for you? I have many friends, acquaintances and family members who own iPods, or iPhones, and no one has ever complained about reliability. My daughter - 8 years old - has an iPod Nano which Santa brought her for Christmas. She is rather rough, and at times extremely rought, with it but it keeps on tickin'.