I think the iPod's are amazing from a design standpoint. Same for the iMac's.
I prefer the subscription model to Itunes. With Napster or Rhapsody, it is like having the world's largest jukebox, and you can take your music with you.
Who needs to "own" a bunch of bits and bytes?
I'm convinced all music will move to subscription. There will be a ton of free stuff too.
Regarding the hardware, the iPod was successful b/c it is to a large extent a fashion accessory. Fashion trends don't last. The iPod will be peaking very soon.
All the "imitators" will eventually marginalize the iPod and the battle will soon no longer be over the hardware.
It will be over "subscribers."
While they have a headstart this time, Apple's attempt to keep the hardware and the software tied together and proprietary will once again bite them in their arrogant ass.
I love showing people that pay for songs off itunes how Rhapsody works. They always look a bit stunned and sheepish.
The Rhapsody / Best Buy deal (using a Sansa player) is a good prelude to what's coming down the pike.
Napster is going to bypass the players altogether in Japan through a joint deal with DoCoMo - the largest cell phone company. Japanese consumers all have music enabled phones already and they do more with them than we do ours. They will naturally move straight to downloads on their phones. No iPod or Sansa needed (although flash memory sales will likely continue to rise).