The lawsuit argues that Apple sought to build monopolies in the digital music and portable music player markets by integrating its products and services while preventing interoperability with competitors' products.
Well they could have chosen a Zune player or even a Creative MP3 player. Seems ridiculous to blame this on the iPod and Apple wanting to control its Eco-system and experience. Its like a lawsuit for the fact that it's not easy to install third party non-app store apps on the iPhone or iPad.
The lawsuit claims that Apple violated federal and state laws by issuing software updates in 2006 for its iPod that prevented iPods from playing songs not purchased on iTunes. The lawsuit claims that the software updates caused iPod prices to be higher than they otherwise would have been.

Weird, maybe my iPod some how never received this update? I bought music from stores and ripped the disk, that was possible to play, got music from friends and it worked fine. Obviously I was very lucky it seems.