The main thing that I don't like is how your library on the phone is tied to just one computer.
Yes, that's also a major disadvantage to me.
I'd like to give my parents an iPod touch with tons of family pictures and movies already installed. Then they could add pics later on.
But I can't just do that. Because the idiotic iTunes will wipe it all out the first time they sync.
So what I would have to do, is also create a DVD of all the data to put on their laptop so their iTunes doesn't have a heart attack. And that's just too much work, compared to giving them any other PMP.