I discovered this by accident. Spotlight will index your iPod, but not your music files. But using the Terminal, you can force it to index music with the following command:

 sudo mdimport -f /Volumes/your_iPod/iPod_control/

After you have indexed your iPod music, search for your music and view it in the Spotlight window. Double-click on a track of your choice and it will be imported into your iTunes music library and copied to your Mac's iTunes Music folder.

Not necessarily the easiest or most elegant solution to transfer music from iPod to Mac, but interesting that it is now rather trivial from the OS (Ok, it was previously easy to copy using the Terminal, but less easy to find what you wanted to copy).