My $0.02...take it as you will...
I have an iPod Touch, 8gb, 2nd Gen I believe...it aint all that. Its an iPhone minus the camera and a cell phone...
It has the same exact faults that the iPhone has for me...no replaceable battery and no upgradeable storage without purchasing a new device...which is asinine in this day and age IMO.
The reason I have an Droid X is simply because I could have a cell phone, mp3 player, and a movie player all in one device, and be able to load my entertainment content as I see fit. iTunes is media management for those people who really dont care what their media looks like...hap-hazard if you will.
I am very anal about my media content..all my music is in full album form, starting with large "Genre" folders, of which I have 7, then "Artist" folder and then "Album" folders. When I copy music to my device, if I choose to add music that is not already a full album, such as a custom compilation, I manually go in and create the album folder, drop all the tunes I want for that particular album(35-125 tracks), and then manually go in and edit the tags so that my chosen app will read the files correctly. Then I just drop it in my Music Folder on my SD Card...this is actually quicker and easier than trying to let iTunes try to sort through my 315gb`s of music!
Not surprisingly, its the same damn thing I had to do with iTunes because Apple decided it knew better how to tag my music than I did...
My video/movie files are cataloged in the same fashion, minus the Genre folders...in their place I have 4 Common folders, Single films, Franchise films(2 or more in a series), Animated and Music/Concert...this would make iTunes lay an egg and shut down..I know, I have did it.
In the end, I would rather handle my media, my way...not what Steve and his Cupertino Communists think is the right way...afterall, it is my media, on my phone...I did spend my money on it right?