Pity the BLS

They have to calculate the inflation rate on products like this:

The iPod will be six years old next month. The newly released iPod Classic with 160 GB of memory is $50 cheaper, holds 40 TIMES more songs, plays color videos and displays photos than the original. It is smaller, lighter and has a better battery. I wonder how the BLS takes account of the quality differences when measuring the price index and inflation.