The transistors in your iPod are also a gatrillion times smaller than anything visible with the naked eye. If one of them is 100 nanometers square (assuming a 30nm process — anybody know if 3λ is about right for a transistor?), that's 4× less than a wavelength of light. Your visual resolution might go down to 10 000 nanometers or so, which means that in the space of the smallest dot you can see, you can fit on the order of ten thousand transistors. (More than you'll find in an 8080 or 6502.)