This thread got a little more feedback than I expected.
I agree with mmntech. Probably just one more iteration.
It kinda bugs me that no one markets small, compact audio players in Canada/the US anymore. I'd assume there's many people like me who don't want a phone but have a music player with them all the time.
If I were Sony North America I would market a small, simple 32/64 Gb music player for $150 right now. I would figure they'd sell quite a few.
As for iPod Touches, ,my 4th gen is still good for music, but games, not so good.