I'm happy with my 8 GB nano filled with high bitrate mp3s(actually I don't feel the need to walk around/cycle around/take train/take buses with lossless albums, to fully appreciate them I'd need a portable amp and good closed headphones...and to store the ones I have all lossless I'd need an HD with capacity---> infinity
), I heard many good things about Kenwood and Cowon players (sound quality-wise), dunno how much they cost. Try to search a little.
Honestly I think that "magic wheel" on the ipod is one of the best things ever, I dunno if I could re-learn to use a thing with more than ONE proper buttons.
have a look at this forum (really interesting stuff, maybe even a bit too audiophile-oriented in a sense)
http://www.head-fi.org/
and for the ones willing to make their ipod much better (for a quite high price)
http://www.redwineaudio.com/iMod.html 