I think it's a remarkable success story for Apple and unfortunate for everyone else. The iPod has always been a victory for style over substance, build quality and features. Never mind.
My ipods have served me well and done all that I have wanted of them. They have sold well because they do what most people want, play mp3's (obtained legally or illegally) without too much fuss. The style and marketing thing has also been doen very well. It is not Apple's fault that no-one else has managed to do the same.
A well marketed good basic product- somthing like this will always sell :) :)
I recently got my first iPod, having struggled with using my aging Palm T3 for music before. Apple's success is well-deserved, and is based upon the scroll-wheel patent. The scroll-wheel is the heart of the iPod, and the thing that sets it apart from everything else. Apart from that, the interface is a pretty simple menu cascade which can be improved by suitable editing of the firmware.