Yeah man, I went out the other week and bought a 120 gig iPod Classic and my friends were absolutely flabbergasted as to why I'd wasted money on a CLASSIC and not gone for the latest iPod Nano which was $100 more and only 16 gigs! Some of my friends are ridiculously dumb. I mean I wanted an mp3 player with lots of storage and that was the easiest option but when I explained this they were like BUT IT'S UGLY... THE NANO IS SMALL. Heaven forbid they try to convince me to buy a Touch!
I have the touch, and considering my small collection of music, it's great. It's handy to have to check my email and other stuff instead of waiting for my laptop to load up. Also Katamari Damacy on the iPod touch is pretty awesome.
But yeah, if you have gigs and gigs of music, the classics are way more useful than the nano or touch.