i think one of the reasons the ipod has done so well is the design...good design begets good marketing, and apple's marketing is top notch. i am an industrial design student myself, so i know a little about good design. the main reason i would never buy something like the archos jukebox or creative nomad is design and useability. i have a friend who bought a 20gb archos aroung the same time i got my ipod and he as saying how he got a better deal price/gb but when i tried to use the thing, the buttons were a pin to press and the scroll wheel on the side was basically unuseable, same for the nomad, i just found it clunky and difficult to use. To the average customer, just feeling the ipod in their hand versus the competition will sell them on one. That being siad, i think the biggest challenge with a smaller ipod is keeping the design consistant with the bigger one. i mean not the exact shape, but make people think of the larger ipod when they see the smaller one. another big problem is that with smaller size comes more difficulty with regard to well engineered buttins and screen size, that coupled with a "cool" factor will untimatley decide weather or not this thing will sell or not