Right - but I feel like I'm paying for something that I won't be using. Also, isn't it possible that an all audio version would have a better DAC than an audio/video version?
Holy cow, where to begin? You're paying for a 30/60 GB hard drive. When you buy a hard drive for your computer, do you look around for one that CAN'T be used for things you don't need???
As for the DAC, get over it. Really, really good DAC chips cost less than $1 apiece when purchased in the quantities that Apple does. And the DAC in the iPod is a really, really good DAC. Don't take my word for it. Take John Atkinson's: "The iPod's measured behavior is better than many CD players."