I think the iPod is much nicer than this, and much more sensible to have. For the price, you may aswell buy a £30 MMC card for a phone that is 1Gb. That would only be able to hold like 150 songs max, which sucks if you think about it. An iPod seems so much more sensible to use, and much easier to use, in my experience.
As said earlier, all it is really is a flash stick that plays the data that is on it, it isn't a hard drive...
Can you honestly imagine putting that thing in your pocket? It would be too annoying
.