I just got a mail from my Chase Freedom® Visa recently. They were offering a deal where if you redeem your ultimate rewards points for an iPod (classic, touch, shuffle or nano) (valid until 30th June 2010), you will receive a $25 gift card. I logged into my account, and lo behold, the deal was splashed across their home page.
I then checked to see if it was actually worth redeeming my points for.
For the latest iPod Touch (32GB), you need 27,700 points. The Apple website showed that it would cost $299 (not including tax). Plus if you redeem your points for it, you get a $25 iTunes gift card. It looks like in this instance, it may actually be worth doing it if you have enough points.