I have a 2nd gen shuffle that I use at work and love it. And being able to clip the little sucker on the outside of my pocket for easy access is just great. I must admit when the shuffle first came out it seemed like a waste of money to me. But now I realize it is more of a situational then general use device.
The other day I was sitting outside of my school on a bench waiting for the bus, listening to music on my iPhone, flicking through Cover Flow. (Which I love to do.)
Then this girl who I don't know walks be me listening to a shuffle. She looks over at me and sees the iPhone. Her eyes go all wide-ish and she stares at her Shuffle in a why-the-heck-do-I-have-this-instead-of-that sort of way. Kind of funny.