Tough call.
I love mine, but I could see it getting upgraded or the price dropping.
It's still the best MP3 player out there, but it's a bit pricey when there are players with 20 Gig drives at the same price (however not as nice.)
I think I would wait, but it's just me. I think they'll just drop the prices. It is relatively new, so there probably won't be an iPod 2 anytime soon.