"The iPod nano is small. You just won't believe how precisely, minutely, mind-bogglingly small it is. I mean, you may think the iPod mini was small, but that's just peanuts compared to the nano. Listen..." And so on.
(with apologies to the late Douglas Adams)

Small has value. The amazing success of the iPod mini showed that people are willing to pay for portability and style. The iPod nano has both of those, in spades.

But small costs money. The full-size 20 GB iPod, which costs just $50 more than the iPod nano, has five times the storage capacity. And it can connect to a TV to display photos -- something the nano can't do.

iPod nano Pros:
- tiny size and weight
- color screen for photos and album art
- new features (clocks, stopwatch, screen lock)
- compatible with 30-pin dock connector (and related accessories)
- holds the line on price at $199 and $249

iPod nano Cons:
- less storage space than iPod mini
   (2 GB / 4 GB nano vs. 4 GB / 6 GB mini)
- no video out for photo display on TV
- um, maybe impossibly small = easy to lose?

If you want an iPod that does double duty as a hard drive, or you want all the photo features, move on up to the 20 GB or 60 iPod.

Otherwise -- in the words of pretty much every review I've seen so far -- the iPod nano looks like a slam-dunk.