I bought the smaller one here at Woot, and I have to say, this thing is pretty cool! Don't think of this as an MP3 player, because that is not really what it is. Think of it as a portable Pandora.com.
If you are like me, you don't have time to download new music and update playlists. With me, I always make a playlist, and then get sick of all of the songs on it by the time the next week comes along. But with this, all of that is done for you. Also, I am really bad with who sings what songs, and have been wanting to listen to songs from the 90s, so lately I have been playing the '90s alternative station. All my favorite songs, back again! Really cool.
Pros:
-You do not have to install ANY software on your PC (if you have WiFi)! Everything can be managed on the web
-You can use WiFi or USB to update your media player
-The radio stations they made are well done
-The Heart and Ban buttons are a nice feature, which control the priority of song plays (Hearted songs are played more frequently, banned songs never come back)
-For many artists, you can read an artist bio, and album bio. Pretty neat.
-The screen looks amazing
-You can set a handful of features for playing, such as if you want newer or older songs, how often you want favorite songs to play, and if you want the service to look for new artists that you may like.
-On my car stereo and headphones (Sennheiser HD 555), the sound quality is what you would expect from a good MP3 player (such as laptop headphone output)
-Adequate bitrate for songs (I don't know what it is, but listen to the web service if you have any concerns)
-You can manage favorite/banned songs online (so you can favorite a song just to remind you of what it is, then clear the status on the PC after you write down the name)
Cons:
-The firmware is a little buggy (not quite final release quality)
-Not being able to navigate the song can be annoying. All you can do is pause or skip.
-I really like the touch strip, but it is too sensitive for use. They have abandon this technology on the G2 unit, so don't expect firmware to fix this. You can disable the touch strip
-No Equalizer
-You need the web service or software in order to choose what radio stations you want
-You need the computer to edit favorite/banned songs
Other:
-They claim you get "commercials" every hour. This is true for the web player, but on the portable, all I have heard are short clips maybe 5 seconds long saying "You are listening to Slacker Radio" maybe once an hour
-This player is best used by turning it on and forgetting about it. Options can only be changed online, and you have no selection in what you listen to (other than changing radio stations and skipping songs).
-It does have storage for MP3s you already own, I have not use this yet
-The player tells you the artist of the next song, but that is it.
-The 6 skips per hour are only for that specific radio station. Other stations have independent skip counters.
-In order to skip a song without using any of your 6 skips per hour, you can change radio stations. When you change radio stations, new songs are picked for currently playing and next up.
If you are unsure, just go to Slacker.com and listen to the web service for a bit, and I think you will end up buying one!