Have you asked if they'll give you a grace period during which you can redirect people to a new domain, and/or allow you to bid on search keywords for 'ipodrip', so as not to destroy the goodwill built up by you product? If not, perhaps you should lawyer up and negotiate an orderly transfer. an IP lawyer might propose to Apple that they buy the offending domain off you, or that if you transfer ownership they will maintain a redirect to your website for a set period of time.

You are entitled to negotiate, since the letter you received from from Apple's lawyers, not from court whose decisions are final or limited to a narrow kind of appeal. IANAL, but this is basic common sense. In any case, you should be taking to an attorney to ensure that whatever action you do take protects you from future claims of liability.