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People think it's so good that it may eventually replace the iPod Classic in the future (assuming that the iPod Touch becomes the main, larger iPod system). I kind of agree with this, primarily if the Nano's capacities are enlarged. Right now the 3rd Gen Nano is one of the most perfect MP3 systems I have used, and the new software is great. Coverflow works fine on mine. All of the gripes I have with it (such as lag) can mostly be fixed with updates and aren't that bad or noticeable.

I own the green one and it's extremely small and cute. I don't see myself watching videos on it, but the picture is very sharp and clear. It's obviously a small screen and not good for epic movies and the like (such as widescreen format), but what else would you expect with something as small as the Nano? Or even an iPod in general?

It's totally worth it for the price. I found one on sale here for $199 (which is the regular price for the 8GB in the U.S.A.). The only things that bother me are: the lack of covers currently out there for it (the reflective backing is prone to scratches and fingerprints), but I will make sure to get it as soon as it comes out. Also, the iPods still don't have some of the basic features that other MP3 come with for free, such as radio. That's about it.

I was so into Coverflow after I bought my Nano that I opened up iTunes, Amazon, and Google Images and just searched for album covers to display. This took me hours but it was worth it. Now I don't have the general music note image where an album cover should be. The new interface with album covers is worth using.
 
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