Here’s an article on that talks about how Video iPods are cool but not useful. It draws on the Nielsen study that says that video use on iPods is very low.

I personally can never imagine spending more time than it takes to cast a cursory glance to view a video on the video iPod. Especially not for interesting content – I might use it to view some lectures from Stanford [ where the audio is important than the video and the only reason I might view the video is because there might be a PowerPoint presentation in the background ].

I own a U2 edition, 20 GB, black and white audio iPod.