I'm not going to cover specific media player gadgets. I'll leave that to others, I just can't get that excited over music players. Just not my bag.
But one trend I noticed with MP3 players is the addition of new features such as iRiver's W7 incorporating GPS into their player.
My ideal portable device would let me play music and videos, use GPS, have 802.11 support, optional 3G support, a fantastic web browser and be relatively small with maximum screen size. Or put another way, an iPhone with 3G and navigation. Microsoft needs to hurry up and get Windows Mobile 7 out there. Microsoft's excessive NDAs really come back to haunt it because contrary to what its detractors say, Microsoft has been a real innovator in the last few years. There's really nothing in the iPhone that wasn't in Windows Mobile 7 much sooner but because of NDAs, nobody can really talk about it so when it comes out, people will claim it is a copy of what Apple is doing even though it had the functionality first.