I think the market pressure from rio, iriver, and creative will force apple to loosen up about the Ipod.
I really like some of the small format players in the 5 gig range, and will wait for that size format to grow into the 20 to 60 gig range, and drop in price before I buy another player.
For me, the larger physical format of the nomad I have is no problem, as I use it mostly in the car and riding the train.
Also, when the really small format ones that have 256 megs or so right now mature to a 3 or 4 gig range or so, but on solid state so I can run with it without worry I'll look at getting one of those, for me or the kids or something.
Right now the price points are just too high on all of them for them to be a real consumer market, but as that changes, expect Apple to either change its tune (haha, teh funnay) or disappear into being a niche player.