Drop any hard drive on a carpet and you risk ruining it. However, I've dropped my iPod a few times, including into a puddle of water on a cement street, and it has survived. I do keep it in a leather case at all times.
As for the "video" iPod, who cares? It's all about the audio. Even Apple is only marketing the video functionality on the new iPods as an "extra." As an audio player, the new iPods simply have no peer.
No I am not kidding Ipod is $500 and an MP3 CD player is what $50? While my teenager may agree with yours, CD players may not fit in their pocket; the price fits better in the pocket book!