I don't know why there are so many ipod haters - I think they are great, but that's another thread.
One thing to consider - for working out, you probably want something flash-based, and something simple to operate. I have a 4GB IPod Nano that I keep most of my music collection on and carry with me everywhere, but I find it impractical for using at the gym. For working out, I have an ipod shuffle that works perfectly for that use - no fumbling around to select playlists or tracks, no screen to scratch or break, no lock button to worry about. I just load up some good tunes for working out and let it randomly cycle through them. If I want to change songs, I just reach in my pocket and hit the "next" button and it goes to the next random track. I suppose I could setup custom playlists to use my Nano while working out, but I don't really want to bother with it.
Anyway, look into it. If you just want it for working out, the shuffle is hard to beat, and it's only $69.