Well lets hope the itouch or the new ipods get a 128GB option soon.
My old 120GB Classic has served me very well. Great on the train where you can never get a 3g/4g signal.
Battery last the entire return journey and does not waste the battery on my HTC one (which struggles to keep its charge for the day as it is).
It plugs directly into my car again not reliant of 3G/4G and I have my entire CD collection on it.
Yes it also plugs into docking station at home. Until we get truly universal and reliable internet coverage (also on tube/train) for free there will always be a place for a personal player.
Even my 15 year old daughter separates music and phone, even though her phone as far more storage.