I'm perplexed as to why the shuffle is still here at all. There's a point at which small is just too small, and the shuffle hit that with the latest iteration. Also, we're at the point where the capacity is too large to be manageable without a screen, and the components for the Nano are cheap enough that there's little price advantage to the shuffle.
FWIW, I agree that the previous gen was way better in terms of practicality. Also, I actually liked the first-gen shuffle most... it doubled as a thumb drive. IMO, the shuffle is one Apple product that gets LESS useful with each generation. I'd like to see that trend reversed in 2010.