It helps to think of this one as a different class of iPod than the previous generation Nano. If you try to compare it with the old one, you’ll be disappointed. (This one loses a decent video camera and the ability to play videos.)
Other than the high price for what you get, I consider this to simply just be an amazing iPod Shuffle. It plays music well — you can navigate songs. If you are a jogger with the Nike + kit, it will help you measure your run. There’s a cool FM radio. Finally, there are some great accessibilty features for those who need such.
If you don’t need all that the incredible new iPod Touch* offers — and can afford it — this one may be for you.
(I took the photos at an Apple Store with my phone’s camera — thus the poor quality. They don’t like anyone to take photos with a real camera inside their stores. I know. I tried once. And Justin Bieber? I had never heard him before, so I took that opportunity. I hope I don’t have to listen to him again.)
Funny enough, while I was there I played with an iPod Classic. I was amazed at how fossil-esque the interface now feels. (I had one before they were called the Classic.)
* My son Ben wanted the new Touch so much while we were at the store that he was willing to sacrifice his right arm. I didn’t let him.