I absolutely love this device.  What I like about it most is simply the fact that I can carry all of my music collection and a couple of movies in my pocket.  Another thing that is good is the screen size is acceptable enough to watch movies or podcasts and is very easy to see and read.  I also find that the battery life is pretty dang good.  Just yesterday I was traveling home from visiting my folks and the last leg of the trip was mine.  My Ipod had only a sliver of battery power (down to the thin red line).  I spent 5 minutes creating a quick playlist, then plugged it in.  I drove for 3 hours and it was still going.  I even kept selecting more albums, which turns on the screen and zaps more juice, and it still kept going!!!  I was very very amazed.    When I first got the Ipod, I was disappointed about the lack of control over the media.  You really can't change anything without having it plugged into iTunes.  I eventually realized that you can make a playlist on the Ipod (called On the go) by finding a song and holding down the center button until it blinks.  Now that I know that, I am much more pleased about it. 
I paid around $300 for this device with a Bestbuy 4 year protection plan.  It really was a lot of money, but I am overall pleased with the price and the device.  I live for music so having all that music in my pocket is a must.  The precision and quality of the sound it fantastic.  The headphones that come with the Ipod are OK, but when I plug my really nice Studio monitor headphones in, it sounds amazing. 
I have had one of those cheap ass mp3 players that cost like $20, but they really suck.  It couldn't compare with the sound quality, the fact that the Ipod has a really nice screen to watch movies on, the amazing battery life and the huge amount of storage. 
If I were to lose this thing, I would cry for a month straight, especially because I cannot afford to purchase another one.  But, eventually, when I had the money again I would run to the store skipping all the way, because for the same price I paid, I can get the 120gb and keep a crap load of tv shows on it too.  If you are ever stuck somewhere, like waiting in the doctors office or whatever, this thing will keep you entertained.  One more thing, you can but a cable that can hook your ipod directly up to a tv.  This comes in handy when you are traveling and you want to watch a family with your friends/family.  Just bust this out, plug it in, and you are good to go.