My second-generation ipod died this year. It was five years old. I have now replaced it with a $40 1GB flash-based thing (an Insignia Kix from Best Buy). It has %10 of the memory, but is 10 times as easy to use. Just copy files onto it, no messing around with a separate program to create playlists and update databases.
Of course, next year they'll have a 4GB product for the same price.