We got the ipod nano 8g in pink for our 5 year old daughter for Christmas. She's not that into it, but I love it! I've been loading it up with videos from YouTube and fantastic podcasts from itunes. Now I can watch movies at the gym. The other day I sync'd my calendar and contact list on it. And I've added our family photos too. I've also got over 1,000 songs on it and there is still over 2g's of memory left.
The best thing about it, is it's so small I can put it in my pocket and not even feel it. Plus the pink color is gorgeous, almost an irridescent fuschia.
On the downside, you have to...