That’s a horrible accident, but with all respect, that incident had more to do with stupidity than an iPod.
I have issues with blanket statements that listening to music while doing x is always bad. How about “When deciding whether or not to use an ipod, think about where you’re going, your surroundings, and who you will be sharing the path with. If you do decide to use one, set the volume sensibly”.
And for god’s sake people, use your head.
Edit: To the OP; nice edit on the thread’s subject line - that’s much better 