Very true. I had a Touch for a short time, and absolutely hated it. Nothing beats a good ol' hard drive, centered solely on music. The death of the Classic will be the end of an amazing era.
I've had two HD based iPods, 1st and 3rd gen, as well as an original iPhone, and now an iPhone 4.
Hard drives had greater capacity. That is not really the case anymore, if Apple were to commit to it.
I was worried on more than one occaision that a spinning hard drive would be damaged by a jolt or a jostle. Moving parts in a device like that, are not a great thing.
the iPod Classic (including all the HD models back to the original) was an amazing device. It revolutionized an industry or several. But it can rest on it's laurels now. Solid State can take over well.
An iPod Nano could be equipped with over 100GB of flash memory, if Apple wanted to. iPod Touch or an iPad-labeled successor to it could also have quite a bit of flash memory on-board, just as platter drives are gradually being replaced by some SSDs. if the iPod Classic sunsets after a long, great life, the flash-based players would stand to increase in capacity without duplicating product stats.
NAND takes less power, is more impact resistant, and allows smaller devices with larger and longer duration batteries.
That, as well as devices being much more versatile now. Even if you don't use lots of apps, you can clear off all the apps you don't use, or at least hide them on later screen "pages" to be out of sight and out of mind.
But I will say... going from a dumb cell phone, and a classic-style iPod, to my previous iPhone... it was SO NICE to be able to look things up on the internet on the fly, instead of having to say "I'll have to remember to look that up when I get home to my computer..."
I have yet to fill my iPhone 4 32GB, even though I have over 80GB of iTunes Library. I don't listen to THAT much music on the fly, and I tend to leave off the most obscure stuff, and album-filler stuff that I don't rate all that highly. that I don't really feel the burning need to listen to at any given moment. And I sync often enough to fiddle about with that from time to time.
If I had ~128GB of space on my iPhone, like some new SSDs, I would probably just load the whole library by default. And still not listen to the obscure-to-me stuff very much at all.