Just got a Sony MZ-R900 for $255. It's awesome because it has the new MDLP and records 2 1/2 hours on one minidisc without any noticeable loss in sound quality. Really small too unlike most of the Sony US MD players/recorders which have the AA battery hump. The reason I got it for so little was because I have friends who go to Hong Kong all the time and the prices there are something else!
If you're going to spring for a MD player/recorder, I suggest waiting for MDLP to become mainstream. If you factor in the cost for smartmedia or compactflash to hold 2 1/2 hours of high quality sound, you're looking at a price equivalent to a MD recorder. On top of that, a minidisc can be bought for as little as $1.50 these days. Doesn't make sense to buy a MP3 player unless you really need the shock protection and don't care about length of music playback.
Lastly, for recording MP3s to MD, avoid using analog cables. I personally have a Aureal Superquad soundcard with Optical/Digital output. Sure, they went out of business, but when the product is working fine, I couldn't care less.
For some perspective, I own a MP3 player also. Since I bought the MP3 player for $20, I use it for mountain biking or when I think there's the possibility that I might kill myself and the device I'm using. My MD recorder it too precious for that!
Yup, let the arguments rage back and forth, but I've seen and experienced both sides and I'll stick with my opinion.