With 1,000 megabytes of storage that is capable of only storing 140 songs, the obvious question is why bother, when the cheaper iPod Shuffle 1Gb has its price reduced to AUD$149? Same storage, $70 less, and fewer buttons to fool around! But I guess that's why they did not hire me as Apple's marketing executive.
People buy Nano not because they want a MP3 player to store their entire music collection, but because it is cool. It's their fashion statement. Something you wear outside on the street to show that you are "in".
Something this old code monkey cannot comprehend.