It's only as ugly as any other Swiss Army knife. And since I carry one of those at all times I's be more likely to carry this than the Nano which would get broke.
I'd rather carry a real knife, and an MP3 player. This thing is a bad mating job; sharp objects and technology should exist together in the operating room, but not in your survival kit.
In addition, unlike hte aforementioned Nano it has a user replaceable battery, a remote, an FM reciever, two earphone jacks, and a microphone. It also doesn't need ITunes and it has a two year warranty.
Believe me I'm a big Mac supporter, but I think this one's a better deal in every way, except it doesn't have a screen that will let you view pictures (big deal) and it only comes in 1 Gig models (for now).
As a piece of modern art, I like it. I'm waiting for Hasbro to make a Transformer version. That would be novel and I wouldn't cut myself. OK, I'd be less likely to cut myself. :)