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Yes, since the on-board cache is 32MB (which is about a 30-minute song at 128kbit/sec), under ideal conditions, then a long techno remix for example would have to be cached several times. Also, I suspect that AAC-encoded tracks may require 'more processing overhead' to decode on a 3rd-Gen iPod, hence the extra consumption. I used to have my backlighting at 20 secs with the touch of any key, but have now set it to 5-secs, which I find - with the 2.1 firmware update, has considerably extended battery duration.
 
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