Yes, iPods are still amazing. I have an iPod Touch that I love to death. I'm thinking about upgrading to the new one.
EDIT: I have a smartphone too, but I just like having a device dedicated to music. If you put it on airplane mode (I do this because I don't see the need to use the Internet on it) then it lasts a lot longer than my phone, plus I don't get distracted by text messaging, email notifications, etc.