iPod batteries are designed to die after a year and a half... and to replace it yourself is tricky, and runs the risk of destroying the unit.
I recieved a small, inexpensive 1GB Sandisk Sansa m240 as a b-day present... It's not very big, but it's easy as hell to change music. No programs, once you plug it in to your USB port, it appears as another drive. Then it's a matter of dragging 'n dropping the files. And it's got FM radio- with great reception no matter where you are. Excellent sound (even with the default headphones), simple menus, small package. I luff my Sandisk heart
I don't think it's really necessary to have an immense player with as much/more storage space than a pc... You can't really listen to all that music at once, can you?