http://www.techreactions.com/ipod/images/SDCompet2.jpg
is pretty funny.

Doesn't this violate the DMCA?

Judging by the pictures, most of these designs have been photoshopped onto the iPods instead of taking photos of actual iPods with the stickers on them. I can only imagine how crappy the real product looks when applied, if they're afraid to show it on the page.

I'm not sure how big this is stateside, but this sort of thing is massive in mobile phones in Europe and Japan. The most common models (Nokia) are usually made with removable covers that can be easilly replaced with custom ones. It's a huge industry already, there are stores dedicated to selling only accessories like these (and no phones).

Yes, but does it protect it from SARS?