It can be almost like a PDA. You can store contacts, calendars, documents, and you can read all of them right on your iPod. Just can't edit them yet because that would take to long to type with just a scroll wheel. There are games that you can play, 3 by default, but I believe there is the original Doom for the iPod if you found it and installed it. You can also use the iPod as an external hard drive, and use all the 60 gigs of space just to store files.
I have my iPod just hooked up though the tape deck of my car, but there are suppost to be some new head units coming out that are tailored just for the iPod.