(trying desperately not to sound like whatever the opposite of an apple fan-boy sounds like)
vrtual: I'm a compulsive 'must buy now' kinda guy, but I think your idea is much better. 64Gb must be around the corner. There have been rumours posted and it seems sensible.
Having previously overflowed my 80Gb Zune with music I'm having a hard time picking and choosing stuff to squeeze into 32Gb currently!
Initial impressions: beautiful unit, much smaller than I imagined though. Screen is amazingly sharp. User interface is really nice - very responsive and fun. Web browser... well... haven't played a lot with it but it's a wee bit small to be particularly useful. The HDMI dock is wicked. Bang it straight into the side of a big LCD screen and off it goes, remote control included. Must be some smarts in the docking station as the first thing it did was download an update for it :-)