TEAC's 3.5-inch touch-screen toting MP-600 is available now for €169 / $230. For that price, you get 4GB of flash storage, MP3/WMA/DRM9 and JPG/AVI playback, FM tuner with recording function, built-in speaker, and up to 10-hours of audio (5.5-hours video) off battery. Better yet, the little 73 x 43 x 9-mm player is thinner than the current disk-based iPods (at the expense of capacity) yet can still be expanded via SD/MMC memory cards. Shaaaweet.
[Via Anything But iPod]