This thing is going to sell really well, even at this price point. The people who are even talking capacity are missing the point entirely. It holds over 60 CDs at a decent encoding quality! That's good enough for me and many other folks to have on us at any given moment. That's way more than enough for even the longest trips I take. Give me a break. Unless you are using your iPod fairly extensively as an outboard hard drive, why would you really need more than that? Some of you people are addicted to Gigabytes, for no real good reason.
You DO know you can synch selected playlists in iTunes, right? It's as easy as checking and un-checking some boxes, plugging in your iPod, and BAM -- whole new set of over 60 albums in a few minutes. Kind of negates the need for a huge-capacity iPod on me at all times, especially considering I am very likely to be traveling with my iBook, which holds the entire library!!!
The price point is fine. Remember that it's $229 EDU, and a HUGE portion of the folks Apple is aiming at with this thing qualify for that discount.
I bought myself the gold iPod this evening (goes well with my last name...) I am a first-time iPod buyer, even though I have wanted one since they came out (especially the third gen). Well, I happen to think that this one REALLY tops them all! The size and weight are KEY, I dig the colors, and you know what -- the price was finally just low enough for me to go for it. I really don't make very much money, but even I can afford the asking price of this thing.
Portable music players have always been about "style" as much as substance. Well, this is by far the coolest portable music player _I've_ ever seen, and I think for how freaking cool it is, how DANG TINY it is and still can carry 60+ of my albums.... WOW! I drooled over the 3rd gen iPods like no other consumer electronics device I've ever seen, methinks -- and now it's been topped.
This thing is going to OUTSELL the original IMO, you mark my words.
I admit, I had to think pretty hard about whether I wanted to splurge and get the 15GB. That is a GREAT deal, and Apple should be getting more props for bringing that out at the bottom of the iPod range. But in the end, you know what I said? 60+ CDs is enough to have in the size of a business card -- it's IS 50 bucks cheaper, and is simply way cooler IMO.
That logic is going to hold for a LOT of people. Millions, without a doubt.