I'm just not a big fan of Apple or their products. Since I don't buy downloads, iTunes is of no use to me. The cool thing about the RCA is how easy it is to use it on any computer (no software). I can D/L that days Rush show around 4:00, move it to the Lyra via USB, and use the FM transmitter to listen thru the car stereo on the way home. I'm sure you can do the same with an iPOD, but you need the software and an FM transmitter.
iTunes is a program that catalogs your music library and has a feature that links to the Apple store for downloads. You can use the former without the latter, as I do. I've never downloaded anything from Apple and have used iTunes since it first came out for Windows. All my CDs are ripped in my collection, loaded on my 60g iPod, and I have set up playlists to not only listen to, but also sync with my iPod Shuffle. The headphones and wires are more noticable while using the Shuffle than the actual device is.
The 1g lyra with the FM transmitter is more than the iPod shuffle of the same size with an aftermarket transmitter (or, at worst, roughly the same). Not only does the iPod sound better, its smaller and lighter. iTunes is easier to use (and better) than MusicMatch, and Rush will sound better on there!
I'm not a big Apple fan either. iPods are the only thing of theirs I own. Their computers are overpriced and way overhyped. iPods are now reasonably priced.