Well, I couldn't have been more wrong. ;-)
Really unsure of what was supposed to be revolutionary about this announcement. The nano looks nice, but it's a straightforward evolution of the iPod mini line. The phone we already knew about, and ultimately it's limited by its 100 song capacity. The idea of being able to get a song anytime, anywhere, made a lot of sense and presumably would have been relatively straightforward to implement, so I'm not sure why they didn't go in that direction.
Oh well. Nice updates, just not necessarily deserving of the hype.