Check out Creative Zen or any number of similar devices. Just to not have to use iTunes alone....
I HAVE checked them out. They aren't better. Not only do they not sound as good as an iPod playing MP3 files, the AAC files sound better as well. And while iTunes is a resource hog (at least on Windows), the features are pretty good.
I will admit some iPods are overpriced. But they are the best units on the market. I've owned 3, as well as other mp3 players.