Seems to be true:
“apple cripples recording on an ipod so belkin and griffin then have to sell us add-on devices for over $50 that can only record at 8khz, which is all pretty shitty. apparently (the rumor is) apple does this so people don’t use their ipods to record stuff they think we shouldn’t, like concerts, whatever.”
Read more: how-to record on your ipod (for free)