Pros:
1) Slim design.
2) Most well constructed iPod to date (components are actually screwed on to the body instead of just being sandwiched between the body.)
3) Video playback.
4) iPod scroll wheel interface
5) Strong power management system
6) High quality LCD.

Cons:
1) Inferior sound quality compared to competitors and older ipods.
2) Interface is slow and choppy.
3) Albums and Artist names disappear from the albums and artist menus if you have Compilations on.
4) Touch pad is not very sensitive.
5) Weak volume

I bought this Ipod for the video, battery life and space. The most annoying thing about this iPod is the sound quality. Compared to my 6 year old 2nd gen iPod, the sound quality was a step down. It didnt have accurate bass. Music sounded distorted with with the EQ. The sound lacked all spatial feel. The DSP is to blame here i think. It was tweaked to give a better battery life. Other than the sound quality issue this is a decent DAP. However, is this a good DAP at all when its primary function (audio) is mediocre? Too bad there are not many really good sounding DAPs anymore. The iPod is still the best in terms of balance of style, features, interface, third party support and battery life.