I got an IPOD for two reason. One, I'm going on a trip and do not have a MP3 player, and two IPODs intergrate with my new car, so you plug it in in the glovebox, and then control it through the steering wheel or navigation system. If it gets scratched then I don't care. Most of the time it is going to be sitting in the glovebox or in my pocket, so not a big deal.
I sort of wish I'd bought a 60gb one instead -- I could put every song I have on it and never have to worry. I could only find the 2GB Nano, so I've only got about 400 songs on it -- still plenty, and without the hassle of burning CDs. I can switch another 400 songs over there in the time it takes to burn a CD, but a CD doesn't integrate, easily can get damaged, or you have the problem of lugging around 50 CDs.