I have heard that Apple has fixed a few of their battery problems... Personally i would still buy an iPod, ESPECIALLY since there is now a winamp plugin for it
Oh if only i had 400 bucks to blow.
As for alternative, if all you want to do is play mp3s while stationary or low movement, the cheapest way to go is with an mp3 cd player. CD's are cheap and hold 700mb a piece. Only downside is that you can't start running with one.
Hope that helps