Meh...considering I'm always at work, driving to or from work, or doing something other than poking at a pda like a dork in my free time, I guess I'll never buy one of these any way.
Might be fun to play with while waiting in line to pay for groceries or getting a haircut though.
That's because you're not the target audience. MP3 players in general are used by people who use public transportation. When you spend 1 hour or more on your way to school/work and then another hour to get back, you HAVE to do something during that time apart from staring at walls. I think that's the most obvious group of people that these guys target, and if you look around, most young people who don't drive a car have some sort of music playing device with them.
When it comes to phones, Apple will have a lot more competition, since others have been around a lot longer, but the iPod was so unbelievably popular that right off the bat they have a huge guaranteed fan base, even if they made an inferior product.
I think they showed that having 1% of the market meant about 10 million phones...so really, even if they do badly percentage-wise, they'll still do well.