What makes you think the wi-fi antenna was broken? I don't think it had anything to do with the antenna. It had everything to do with a faulty part on the circuit board inside the iPod Touch. This was a brand new iPod, and it was absolutely never dropped. Many of these were faulty, and lots of people returned them to Apple. I got a replacement iPod Touch. It was a brand new serial number. I was glad that they replaced it as I didn't trust the iPods that were made the week my first one was made.
If it was a broken antenna, the software would not gray out the wi-fi settings completely like that. How would the iPod know the difference between a broken antenna, and a wi-fi connection that would be miles outside of the iPod's range? When I go to areas of the city where there is no wi-fi service, my wi-fi setting does not gray itself out - it just shows up as no available wi-fi connection. This was clearly something else.
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