I bought this item several months ago after my second iPod broke down once again, and haven't regretted it since! The touch screen may be a bit tricky sometimes, but it more than makes up for that by having none of the problems iPods are saddled with (constant non-syncing with iTunes, taking forever to eject from computer, etc), and it DEFINITELY has a much better price. Best of all, I can drag and drop any music or videos I want directly into the Coby, which shows up as a regular hard drive when connected to my computer.
The downside is that its "Favorite" folder (roughly the equivalent of iTunes' On The Go playlist) clears almost immediately after you turn it off or let it go into power save mode. You also cannot grab files from folders (playlist) and put them in the favorites, you must go into the All Music section and sort through the whole library.
But like I said, I'm still much happier with it than with my old iPod. No worries about disk fragmenting from disconnecting too soon from the PC and the Coby doesn't get scratched and banged up as badly as iPods do. The screen seems much more scratch-resistant than an iPod's screen.
And at such a low price, you're not making a big investment if you choose a Coby over an iPod!