Product: Great.
Price: Lame.
The dead silence of the audience after the price announcement said it all (insert crickets chirping).
That is nowhere near being able to knock off the high-end flash players. The reason those things sell is because that is all the folks buying them can afford. Giving it to them for "only $50 dollars more," as Steve said, is not going to help them get it.
Plain and simple...Apple has missed it on the price point.
Further...not a peep on battery life. Given the recent hoopla about poor battery life in iPods and iBooks, this was an area Steve should have addressed. As an aside, the battery on the 3rd gen 10GB iPod I bought for my hubby this past August is ALREADY DEAD!!!
While I am underwhelmed by the iPod news, I am extremely pleased with iLife '04. I never did get the last version, but I will go out and buy this latest version. Garage Band is what I have been wanting and the iPhoto improvements alone are worth the price of admission.
Pity about the iPod though. But at least Steve did note that there will be several exciting new products to come out over the course of Apple's 20th anniversary year.
Keep your fingers crossed.