As for sonund quality, the iPods aren't that bad, but they are definitely not as good as iRiver and Creative.
However, the drool factor of an iPod, especially the Touch, is definitely streets ahead of any of its competitors. And being a Macuser for decades, the integration with my Macs are quite flawless.
Me too, I've gotten the Touch out f curiosity and I've found myself caressing it to sleep every night. I use it to watch videos on the go, or in situation when my children are asleep in the room and I dun want to wake them up. I've got to listen to podcasts everynight before I sleep.
Now that i've gotten the Touch, I'm gonna use my 5G iPod video for storage of pics that I'll be taking from my impending overseas trip, as a backup to my CF cards.
My wife and son are still having the old nanos....perhaps time to buy them a Touch too? :P