Yes, that Shuffle is an iTunes stifled low tech option yet still sold well.
If anyone else brought it out it would have been laughable.
In a similar way Apple does similar with the base iPads. They are limited in Apples inimitable way and stay popular.
The iPhone by 'staying as it was' has gone the same way.
It really shows consumers simply do not want to have to choose, a very good thing for Apple.