you're right, rios are kinda a waste. I got one for Christmas and got a scratch on it after dropping it on the ground (oops). Fortunately, Rio sent me two free ones (one after another as I claimed the buttons felt different than normal) which I gave to my siblings (yeah apple learn from them - trying to repair my computer for 6 months with costs out of the waazzoo where it would have been cheaper to give me a new pb [I had them replace my keyboard 4 times, hard drive 3 times, outside plastic 1, display 1, DVD drive 3 times, audio port 3 times, and 1 new AC adapter and logic board and inverter board = more than a new Tipb). But I still use my Rio @ home. Why? well it sure beats turning on my computer and I upgraded it with more memory and rechargeable battery - so it's pretty cool. Plus, sorry to say this but the iTunes equalizer sucks compared to the one built into the Rio 600.
About the product, If apple makes a new multimedia PDA, one with datebook, address book, color, and mp3 functionality, I will buy it right now (thank god for ebayers who buy my old junk for ridiculously high amounts). I mean even if it is based around Palm OS 4.0 vs. Mac OS X mobile, then I would be perfectly cool purchasing it. Mp3 player? nah, mp3's are illegal. I don't think apple would be that stupid and invest money into technology which is being sued left and right.
Any ways, another 4 hours from where I am (1.5 hours away from Apple Headquarters lol. And yes, their campus is very sick and tight.)