ok, there is actually some cool stuff involved here.

1) It's not just a pedometer ... if it's anything like the other Nike running gear, it actually uses an accelerometer and some other crazy stuff to figure out how far you're running. Instead of just saying that a single step = X number of feet it tries to figure out how far you really moved your foot.

2) As others have mentioned, it actually reads the status to you so you don't have to look at your iPod as you run.

3) Perhaps my favorite: Power Song activation. You can assign the middle button of the iPod to your power song. That way when you need that extra kick from a high energy song it's easy access. Once it's done playing, it goes back to your regular music.

The only thing that would make this better would be if Nike wasn't so anti-GPS.