Multi functionality is only a positive if it offers similar benefits to a stand alone device. The iPod Classic was a fantastic device because it had enough storage to carry your entire collection, and its size and weight made it practical for running/working out. Running with an iPhone (plus a case) is absurd.

I understand its a niche product, but whats puzzling is that Apple makes three iPods (Touch, Nano, and Shuffle) and between them they cant create one that at least nods in the direction of Classic users.