Don't forget they can record now too...
One of the biggest reason I got one for my brother entering his Sophomore year was the fact that it would help him record and playback lectures. I would definitely call that educational.
Additionally, though admittedly not the most popular use, I use mine to listen to language "tapes"/CDs for practice.
The iPod's uses are only limited by imagination...
Now if only Apple could realize that students do buy new computers for school, and schools buy new computers for students... oh somewhere around June/July timeframe, and once (just once) since the return of Steven P. Jobs release an iMac, iBook, or PowerBook in time to hit that rush, then they might *actually* see an upswing in edu orders. As long as they keep announcing in Sept and shipping in Oct (where have we heard that recently) they just aren't going to make the inroads possible. "Back-to-school" is the boom for all OTHER school tool companies... why not the original?