I just want to listen to my music. Which I can. With ease. All of it. In one place. In the car. On my bike. iPod.
I agree to an extent with your 'more product for your money' position, but if I'm not going to use any of those features, why should I buy them?
The mass market doesn't want "SD and CF Type II slots for expansion." They want something cool and easy to use. I plug my iPod in to my computer, drag and drop my music, and I'm read to go and listen where ever and whenever I want.