1) It's better to have a piece of software that works well on a few devices, than works poorly on several. If it doesn't work well, people won't use it at all.
2) As has been said in MANY places: Work gets done by people who own the hardware and have an interest.
Please, follow our forum rules. Ignoring them is not a good way to get on anybody's good side. There's a thread for the 2nd Generation Nano. But it's not a simple job. If and when someone cracks the encryption it's still very likely to be months, if not over a year, until support comes depending on the state of hardware documentation and other related issues.
Saying "We really want it" is not going to magically make someone be able to solve the problem, or magically create more time for someone to work on it, or magically put players in the hands of the people with the appropriate skills, or magically fix other outstanding bugs that some developers are more interested in, or solve any of the other things that keep this from being worked on.
It will be worked on when somebody who's keenly interested (as you seem to be) takes that interest and begins working which doesn't ever seem to happen, those who are keenly interested decide that people who've already taken the time to learn the skills for some reason should do it for them, instead of following their lead, learning the skills, and doing it themselves. Just because somebody knows something you don't doesn't mean they have an obligation to use that knowledge for you, especially when doing so can mean many, many, many hours of time working on something.