The iPod nano 5 gen is the peak of their Apples devices. Light, 16 GB, solid, many hours of battery life, awesome click wheel interface but even more awesome is that it is the last iPod that works with libgpod, so you don't need iTunes to run it
*sigh* it was all broken with the ipod nano touch. A truly stupid device and concept. I bought a refurbished gen 5 nano's after washing my old ipod.
BTW I would never ever buy an iPhone for fear I would have to use iTunes to talk to it.