I think everyone I know has moaned about tangled iPod cords at least once, and yet no one really does anything about it. The budcozy gets rid of that complaint, but it also kind of makes you look like Dilbert.
It has snap closures to separate each earbud while you're wearing them, and tabs and snaps to make them easy to wrap, so you can put them away (where most tangling occurs, IMHO) cleanly.
Made of a mix of organic cotton and hemp, budcozys are only $15 and useful, yes, but would you sport this? I think Avril Lavigne would.