This is what I don't understand. When you bought the 770, it came with Flash 6 which works well enough but obviously doesn't support youtube etc. Nokia never promised the 770 would support youtube (ie. Flash 7+) so what's changed? The 770 worked when you bought it, and it still works - if it wasn't good enough when you bought it, you shouldn't have got a refund. There was never a promise that Flash 7+ would be supported so expecting that was misguided.

The only thing that has changed recently is that Nokia have now brought out a more capable device which does support Flash 7+/youtube - what direct consequence has this had on your usage of your 770? If the new device hadn't come out, would you still be upset that the 770 didn't work with youtube? I bet you would not.

To me, this sounds more like a perceptual issue - the new device can do it, I want it too. The reality is, your requirements have changed - you believe you now need Flash 7+, but when you bought your 770 you clearly did not (otherwise you wouldn't have bought it). This is not the fault of the device, or even Nokia - you have outgrown the device. Sell it on eBay and upgrade.