I just wanted to chime in...
I bought a green iPod nano about two weeks ago in the Woot Off, and I love it.
We are an iTunes family, and have been using it (locked in) since 2004. I have an circa 2004 3G iPod 30GB with Firewire, and even though it has a port connector, it isn't really fully compatible with all of the current accessories. Bummer. Plus, the battery has degraded over time, so it is always being plugged in when in the car to charge.
I am also holding out on the new 3G iPhone, so I'll be picking one of those up in the next month or so too.
Well, the 3G nano 8GB meets my needs quite nicely. I get a color screen, capable of playing movies and TV shows and video blogs (regardless of how they get into iTunes). I can simply add it to iTunes with a new playlist, and it works with all of our other iPods in our family (wife has a 2G iPod and a Shuffle for working out).
Being a respiffied, it was dirt cheap from Woot, and that was great! Any scratches? Yeah, a couple of tiny ones on the back. Nothing too bad there - about the same that I would have caused it if I left it on my pocket for a week or so. Don't worry about that, plus you are saving about $70 off a new one. And the screen was perfect, no scratches there, and all the pixels are A-OK. Personally, I would have wanted a black one, but I hesitated, and they sold out quickly. I almost bought the silver one (still somewhat masculine color), but decided on the green one instead, and love it! The silver didn't seem to look 'right', almost like I would have preferred a darker grey color instead of the lighter (too light?) silver shade. But the green one offers a really nice color contrast to the screen. Also, I had to reformat it from Windows back to a Mac which took all of a few seconds (not a big deal at all) when I updated the firmware. Easy with iTunes.
Overall, I'm quite pleased with my purchase, and I'm pondering grabbing another for a gift. Right now, I carry this little guy in my inside pocket of my riding jacket when I take my motorcycle to work (50MPG!!! - and Fun!). So light (compared to my 30GB 3G iPod) that I forget that it is there. And at work, I drop it into an iPod tabletop radio to listen to it and charge it. Woot forgot to mention that it also comes with a radio/dock connector adapter insert to hold the 3G nano in these types of radios which makes mating them together much easier.