The iPod isn't the only game in town anymore, and great deals can be found on a wide array of digital media devices. I'll run down a few of my favorites.
Cowon D2 4GB Portable Media Player

Going for less than half ($140 as of 12/14) of what an iTouch will set you back, the D2 from Cowon is a player for those in the know. The small Korean company keeps cranking out great gadgets, but with a limited marketing effort in the US this player has remained largely under the radar. Well reviewed by experts and novices alike, the D2 plays almost every media format you can throw at it, has an unbelievable 50 hour battery life and a touchscreen almost as intuitive and helpful as the iTouch. The D2 makes an excellent choice for those looking for a vibrant touchscreen media player but lacks the wi-fi and internet capabilities of the iTouch. Serious audiophiles will appreciate the D2's no-frills playback, but novice users might be a bit overwhelmed. This isn't a player for everyone, but more tech-savvy users will appreciate its features and value.
Sandisk Sansa c250 2GB Player
This is the $30 iPod shuffle killer. With an actual screen (making navigation a breeze), FM and microphone recording, 32 hour battery life, and 2GB storage, the C250 easily outpaces the iPod shuffle and comes in at half the price as well. These players are great for athletes, especially runners who will appreciate its nimble design. Remember when portable CD players crossed over from $80 to $30 and only suckers still bought the expensive Sony ones? Well, only suckers are still by the iPod shuffle. Apple has many great and value packed products, but the shuffle is not one of them. For $30 this would make a great socking stuffer for every family member.
The Stone Plus
The Stone Plus is a great little player with a useful screen, solid
battery life, and 2GB of memory. I have owned this device since its release in July and its held up well to being treated like garbage. I've fell asleep and rolled over it many times, have dropped it running, drenched it in sweat, etc -- it keeps on ticking. The Zen weighs .74oz, the equivalent of holding 3 quarters in your hand. It's about the size of a large pebble. Song navigation is underpowered and so is the battery life (only about 15 hours), but for around $70 this is a ultra-portable memory based player worth taking a look at.