I've got more than 3 times that many CDs at work, which is about 1/15 of my collection, then there's the LPs and cassettes. With half way descent organization I've got access to my CDs at least as easily as an iPod, and don't have to futz with things to listen to them in album order (which is generally better, at least with artists that have been around a while and know how to construct an album).
I see iPods as pretty handy for your casual music listener, but completely worthless for somebody like me.
So many people on this thread who dismiss the iPod are ignorant as to how they work. For example, you can listen to an album on an iPod in order without any kind of fussing around. Just turn off the shuffle option.