Hmm, what makes you say that?
The weight mainly -- using the iPod on an armband is not great. I'm not too bothered about the hard disk vs. solid state, but it is definitely a factor.
...apart from being loyal to the prodicts you help create...
If someone else brings out something better than what we're doing, then I won't feel any guilt in buying the other product. Witness the iPod.
Besides, I can always claim that I'm keeping an eye on the competition

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I would have thought that the iPods ability to store more music would be more useful...
The S30 will hold plenty of music -- my workout is generally not longer than about an hour.