Gaming on the iPhone and iPod touch could be awesome with some kind of thin DS-like overcoat, but the fugly looking thing above doesn’t fit the bill. Two large foam handles only make it look like a reject from a kid’s version of the podracer scene from Star Wars. Yeah, this thing could definitely win in a Special Olympics pod race, but that’s about it.

Your sleek device is lost within. You can almost hear it’s muffled cries for help. This thing doesn’t even sport any buttons, no extra battery life. No functionality period. All for $50. It’s as if your precious iPhone were some drooling abomination that earned itself a “special” helmet for rides on the short bus.

Today Marware launched four new decently priced iPod cases targeting the new 3rd generation video iPod nano, one of which being the Sportsuit Relay, combining two cases in one.

The Sportsuit relay case is created to hold both the new iPod nano and the Nike + iPod Sport Kit receiver and sensor, and includes a small sensor pouch that weaves into the laces of almost any running shoe along with a wristband carrying case. An expansion component to the case lets you also wear the iPod nano on your wrist along with it.

Marware’s other cases for the new video nano include the Sportsuit Runabout, Sportsuit Convertible and the SportGrip. The Sportsuit Runabout case encloses the face of the iPod in a clear plastic case with an adjustable …