Yeah, as an MP3 player they're just pretty slick. If you want a handheld device that can do a million things, they're amazing. Where the ipod is superior to everything else I've seen is the app store, it's astounding the wealth of applications and games you can get completely free. Even the ones you need to pay for are often just 59p. And where else could you get civilization or simcity for a couple of quid?
As above, some docking stations aren't compatible but that usually just means they won't charge the device up when it's docked.
I'd say the only (very small complaint) I have with mine is battery life is a bit pants with wireless turned on, probably only 3 or 4 hours when using it.