1. You can Jailbreak it "Hack it"
2. You can watch videos in a wide screen.
3. Can get customizable screen (with the January Upgrade)
4. You can flick through photos
5. You can browse through music in Cover Flow
6. You can buy things on iTunes
7. You can browse the web
That is pretty much it!
I DO recommend you getting one if you don't have an iPod. For a more affordable iPod buy a shuffle or a nano. The new nanos are now able to watch videos! :D (I know this is old news)