I have an iPod 80 gig video player - though I never use it for video. I have blown away the Apple software and loaded third party Rockbox software so that it will play flac files. I download a lot of live bootlegs in flac format and I can load a new one up and listen while driving (I have a hookup in my car) or doing other things.

I hardly ever burn CDs anymore - I just either listen from my network or listen on my iPod. For me - a 1 gig player would be way too small. I am not fond of 128 kB mp3 files - I prefer higher quality if I can get it.