The idea of to have in one device together the functions of a Mp4 and a cell phone is awesome!!.
Implemented by the guys of Apple probably will bring a good product, but with all the disgusting issues that this company usually put in their products, as it is:
. expensive prices, for the product itself and its accessories.
. lack of some features, that have to be buy separately
. lots of restrictions related with copyrights
. mean attitude concerning integration.
. average sound quality.
As an example of this is iPod nano (my cousin owns one of 4GB), that doesn't have a FM tuner, and organization of files within the device is cryptic (she manage her device only through iTunes). Similar devices (not clones, please!!) of good Chinese companies like Meizu or Teclast, give lots more for less money, and sound quality of my device (Meizu, the only one i have been able to compare) is by far better that iPod machine. Customer support is good, but not comparable with what Apple gives.
Happily above mentioned Chinese companies are working in their own iPhone version, I know that in Meizu it is called MiniOne M8.