I find the iPod an amazingly frustrating machine. So good, but...
At the mall yesterday doing some last minute shopping (!!) I wandered into the packed Apple store. They had the nano up through the video iPod on display. The video iPod was better than I expected -- Jay Leno was playing on it and it was remarkably clear and smooth. The display is bright, and easy to read. All the iPods now do pictures as well. You can rotate through them quickly just by slinging your thumb around the dial. The machine and the interface are works of art.
But then there are the guts. Battery life sucks in comparison to other machines out there. They play only MP3's, and to get high quality MP3's requires quite a bit of space -- though this doesn't really matter for most people when the disk size is 30Gb. And you are locked into the iTunes store and the $0.99/song charge -- in particular, these new subscription services aren't available.
This later one I'm particularly interested in. I still hear lots of new music on the radio that I want to listen to -- but based on one song I'm unwilling to spend real money. Having constant access to one of these services would mean the cost of trying out a new album or band would be nothing.
On the other hand, that black iPod just looks so much better than anything else!