Once again I am glad that Apple does not do what it supposedly "should" do. Current design has some advantages: namely your controls are always more or less in the same place. You don't have to reach in your pockets, grab around yourself looking where did you clip that damn shuffle — just grab the wire and you are done.
Proposed design has more flaws than advantages, not to mention the cost of such interface.
Depending on you wear your shuffle, the proposed design could be downright embarrassing! (I can imagine a variety of situations where it would look like I'm itchy or compulsive.)
Here's what I've learned about second guessing Apple's design on just about anything: don't.
...or at least, if you're going to do so, you first have to acknowledge the degree of success they've had in the past. Don't go declaring the shuffle's controls "flawed" until you have some hard evidence to back up that claim because, chances are, if it's your guess against Johnny Ive's, I'll trust Ive thankyouverymuch!
Well, you can try to find the problems in their occasional bad designs. And if you're a real UI guru, maybe you'll have a good criticism for even a good product.
I really like this design - the controls are far more intuitive than those actually present on the new Shuffle. They also permit the use of non-Apple headphones, or other speaker systems, a major criticism of the current system.
That said, the headphone controls should also be kept as an optional extra - they are easier to use when you're running, wearing a heavy coat etc).
Step 1) Remove the proposed device from your pocket without altering its current state (don't interrupt playback, or start playing when silent).
Step 2) Operate all of the functions of the device one-handed.
If you can do that, the controls work. If not, punt.
His thesis: The Shuffle's controls should mimic the iPhone/iPod Touch/Trackpad's gestural interface. I think that's interesting, but sop short of saying this is what they should have done. But as long as we're using Apple's ideas to make suggestions to Apple, how about a shuffle that has an intertial interface like the iPhone/iPod Touch?
* Shake to re-shuffle the playlist
* Flick in one direction to advance to the next song
* Flick in the other direction to regress to the previous song
Kinda like bezel in Garmin 405? Please don't. It's a pain, extreme pain to control using touches because it is often not reacting as it should, and on a drop of rain, or motion against wall can do lots of harm.