See I think guy nailed it when he mentioned the learning curve on a PPC. People complaining about the storage -- honestly a 2GB CF card costs like 90 bucks these days and fits 20+ albums which is fine by me.
The problem is there's tons of great software out there you just need to know what it is. At school the other day I couldn't find my profs class, so I whip out the PPC, open up my VOIP app and call my roomies to double check. Alternately on the front page I have updated weather information for my hometown, university, etc as well as recent news streamed through RSS. I hit one button to open my mp3 player and hit that same button to turn the screen off while it plays, giving me ~6 hours battery life listening to music -- enough to get me to lecture, where I use a bluetooth keyboard that fits in my pocket to type class notes.
If I'm looking at fooling around my X50V can run Playstation games at close to full speed as well as gameboy advance, snes, etc. Not to mention I also use it as a digital guitar tuner, photo viewer (just pop in your camera's memory card and bam), internet browser which is suprisingly good at scaling pages, MSN client, and can play H264 video along with basically every other format. Pocket streets allows me to figure out where I'm going when I go up to Toronto etc and is great for pinpointing and marking landmarks and looking up addresses. And that's not getting into the great PDF support and full-featured word processor Textmaker I use for notes. Did I mention it has built software for controlling my home computer via terminal services client, useful when I forget something at home and need to send it to myself on the PDA.
Again it's taken a few months to get a grasp on the unit but now I could honestly set anyone else's up in a hour. If you have someone to show you the ropes these devices in incredibly useful and fairly stable if you tweak them right. iPods have their place but right now my Dell Axim beats the hell out of any other unit for functionality and value.