You can't use "frugal" and "Apple" or "iPod" in the same paragraph. 🙂 I'm not an "Apple" guy (no Mac computers and maybe never will), but I got sucked into the ipod universe and just got my, gasp, 8th iPod. Well, between my wife and I, we have 8. The touch 2G is very, very cool, but it is NOT frugal, NOR is it a PDA. No way it will suffice to replace your Sony unit. Only you can decide if it's worth buying. I'm not loaded with money myself, but iPods are just so cool, I can't see not having them. I use the Shuffles most frequently, due to their diminutive size, but since they aren't the sonic equivalent of my 2nd gen Nano or 4G iPod, those get some usage also. I'm a bit bummed that the Touch 2G doesn't sound as good (to my ears) as the 2nd gen Nano. Bass is more clearly defined on the Nano, although I must admit vocals are a smidge clearer on the Touch. At first listen, I was so taken aback by the lesser quality of the Touch's bass that I considered getting a refund, frankly. Further listening revealed that not all frequencies are relatively deficient. ie, it's a definite trade off, sonically, between the two models. I'd read that a new chip in the Touch 2G and Nano 4G would provide better audio performance than previous models. Can't say I agree, at least based on the unit I've got.