The iPod Photo has a beautiful screen, and wonderful battery life, but you're right, it's been crippled. I tend to agree with Jobs' assertion that video is less than ideal for this kind of device, but as someone who's always taking the laptop to the in-laws' or parents' to show off the latest photos, the idea of just taking the iPod -- which would be along for the drive anyways -- is very attractive. The idea of having to take the dock and cable as well, in order to show the pictures on a screen -- not so big on that. Right now, it's not worth the price-premium compared to other iPods.

Jason, if you're not sure teetering on the iPod, check out eBay or other places. A lot of Macolytes are gadget-geeks extrordinaire (myself included) and are now upgrading their still perfectly-good 3G iPods (between 10 GB and 40 GB) for the new 4G model with the click-wheel. You should be able to get a decent price for those 3G models. I know that's the case around here.

It's a great purchase, IMHO. Neither my fiancee or I could imagine being without an iPod. There are tape adapters or FM adapters (I reccomend tape, personally) that will let you play your tunes on your Prius, and it fits brilliantly, either alone or in a holder, in a Prius cupholder. Especially essential if you're the type who takes long roadtrips, since you can take every song you own with you, flip it on shuffle, and listen to as many of your favourite songs as you see fit.

I have a 3G 30 GB 'Pod myself... and my only other piece of advice about it would be BUY A CASE OR A SKIN AT THE SAME TIME YOU BUY YOUR IPOD... because I didn't, and discovered the hard way just how susceptible those things are to scratching. My 'Pod is now not so beautiful, but I love it anyway.