If price is an issue, there are other companies, like CREATIVE, that have hard drive players like the i-pod that cost less. As far as Hard Drives failing, I have had a lot of lap-top computers and have been working with external hard drives over the last few years. I travel around quite a bit and always take a lap-top with me. I've never had a hard drive fail.
.
The Holy grail will be when you can get a digital out from your i-pod and/or your computer. Are you listening, Apple?