Bottom line... Get an Ipod if you want to have something that is a social status symbol, like white wall tires. If you want a cheaper but probably more capable and better built player, go with a Zune or whatever they're trying to pitch against the Ipod these days. Furthermore, when you say "Ipod," even the old lady down the street knows what you're talking about, meaning it fits extremely well into any social situation. Is that worth the price difference? Perhaps not.
All of you already knew this, but I want to emphasize that you arent "succumbing to the beast," or whatever some people may want you to think if you purchase an Ipod. It was marketed well, and apple seemed to bowl a strike on the Ipod. If the company was smart enough to get it into the hands of millions of individuals, they obviously have done something right, and it may very well be worth the extra cost.
As an alternative I suggest looking on a mass retailing site like Amazon to find previous generation Ipods. You will find them significantly cheaper and still brand new there, all with warranties.
I own a 4th generation ipod, it works extremely well. I understand that I could have gotten a slightly larger hard-drive for the same price with a different brand. However, presented with the same situation I would still go with the Ipod.
Good luck with the search.