I just got mine for Mother's Day. I wanted something to take my music with me when I run (literally--running, as in, 3 miles or so. I get bored after about a mile, if I have no music).
Both my kids have them also. Hubby only has a nano--he ONLY wanted music, and he's had it a long time (it was a gift) and he's not really a techie type person. He didn't see any reason not to get a touch for me, to carry my music, since they aren't much more than a nano.
Anyway-- I have a cell phone I use to talk/text. I don't "do" internet on it. No real need.
The ipod is great, so far. It is compact, so I can just toss it in my purse and have internet while my kids are at karate class (wi-fi there), or whatever. I needed to take some pictures at church last week, and forgot to take my camera. It takes video also. Lots simpler to work with than my phone's camera.
I can check my email or this site, if I am getting my oil changed, etc. We have netflix, too. So I can watch instant movies away from home if I am so inclined--the picture is small... but hey... it beats staring at the wall waiting some places.
And there are so many devices you can connect to it to play your music through. We have a docking stereo in our bedroom. So I can pop my ipod in and listen to music there, while it charges it. My kids go to sleep with theirs. In the morning, it is charged and ready to go.
By the way... you are aware that you can play your music through speakers away from your imac, right? You don't have to be in the same room....
I'd pretty much say that I love it. Only had it a few weeks, but couldn't be happier. My kids take theirs everywhere. (We make them turn it off or leave it in the car at church, lol). They play games, etc. I am not much into the gaming stuff..