I want one of these (see conga board).
I'd prefer the 20gb version though.
I've had a 256meg Diamond Rio, a portable CDR mp3 discman, and a set-top box that plays CDs. A CDs worth of mp3s is just not enough. That only holds about 10 albumns. Since I have a wide variety of musical tastes that is not enough for me.
You can find 1st gen ipods for pretty cheap if you know where to go, but expect some issues with them, like papercuts from the scroll wheel

The big reason I want an ipod is the the storage space and playlists. Like when I am on my motorcycle I'd create a playlist of guitar rock since that is basically the only thing you can hear through the wind. If I am just relaxing at home I would have classical and blues playlists. When at work I'd have modern rock and punk.
Zero_Hour has a good point. I didn't realize how nice my 1gb flash drive was. I use it all the time now and wish I had something larger. Especially now since my arcade cabinet is not networked (the computer hates network cards for some reason). I've also been using my flash drive to store bookmarks so I have the same reference bookmarks at work and home.
Since the ipod has a pretty decent color screen now they should had in GPS
