Apple - iPod nano. Wow, Apple just cut their prices again. With a 1GB Nano so cheap at $150 list, there ain't much reason for a Shuffle IMHO.
The screen is great, but there you do need to have a nice case for this (I currently love "Invisible Shield":http://theinvisibleshield.com as the simplest way to protect it).
This is now at the level that every well-to-do kid could get one.