Think they have to use iTunes, but no hassle putting existing stuff onto Tunes.
Agree about the 32GB minimum, I think *GB is small for just music, let alone video etc.
Ripping DVDs is a faff as iTunes wont do it, have to use a third party app. (Handbrake) but easy from there
Not much difference between the generations but latest (3rd) seems to be more fussy about charging from 3rd party speakers, chargers etc.