It's still (just) functional
As far as drive death goes, it's pretty polite. I'm mostly able to get all my data copied, thought it takes about 3 'tick-tick Clunk' cycles to get through 1MB. But at least it's do-able.
I guess the big question now is - do I go the Nano, or the iPod with video?
Two out of three people wonder where the other one is.