Mommy I want an i-pod for christmas

Who' s 2 year old asks for an i-pod for Christmas? Apparently mine does. We were walking through Costco the other day and Olivia looked at me and said, "Mom, I want Santa to bring me an i-pod for Christmas, a pink one." I thought there was no possible way she knew what she was asking for so I said, "What do you do with an i-pod Liv?" She looked at me and rolled her eyes and said, "you put it in your ear an lissen moosic mom". She had been previously asking for Santa to bring her a battery powered car for Christmas and I was hoping she would come up with something else she wanted instead of that, I was just surprised that it was an electronic. I was bucking for a new doll or something. So I said Olivia if Santa brings you an i-pod he will not bring you a car too (thinking that would deter her) she said, "ok mom, I don't want the car. I want an i-pod". At this point I had to flat out tell her that Santa does not bring i-pods to 2 year olds and she asks, "why not?" What is the appropriate response to that?

Kelsee was in a panic when she heard this. She was trying to explain to Olivia that we have already sat on Santa's lap and asked for a car and we mailed him a letter that said you wanted a car and you can't change your mind. So as it turns out we are back to asking for a car (which again I didn't really think she knew what she was asking for, but she said "the kind you push the pedal and drive outside". What happened to the baby doll?