My husband has the 30gb iPod and I have the nano. I agree, the accessories are expensive. $50 (each) for wired fm receivers to listen to your tunes in the car (the wireless had too much static), then $40 for a wireless fm receiver for the house. We love ours - it takes a bit of effort to upload all your cd's to itunes, but it's not hard. Songs to purchase are .99 or 9.99 for a whole cd. The buck a tune is a standard price for most sites. The iPod is an mp4 player - you can't download tunes you bought from musicmatch or napster, for example - but you can burn a cd in musicmatch of the tunes you bought, then upload the cd to itunes.
For New Year's Eve, we used the wireless receiver to play my songlist and it transmitted to the radio in the kitchen, the stereo in the family room, and the radio in the upstairs, simultaneously.
Once you get all your music in one place, it's really convenient.