No need for iPod when you have a smartphone or tablet. ... Nowadays, even riding transit, I see people opting to carry around their iPad mini as a music device.
Good for the people whose needs the iPad mini fulfils, but it only goes up to 128GB at the moment - some of us simply need more. Plus that iPad costs way more than the classic used to; it even costs more than the inflated prices of the few new classics you can still buy! So, if it comes to it, I'd definitely shell out $400-500 on a still sealed iPod classic than $600 on a much-less portable ipad mini with lower capacity.
We seem to have been stuck on 128GB as the maximum for portable flash storage for AGES now. As soon as a 256GB ipod touch comes out for around the $400 dollar mark, I'll snap one up.