At the moment, I'm using a Cowon D2, which is very small, has incredible battery life, and plays avis which is a definite plus. And also, it takes SD cards. Regular, plain ol' SD cards. Not micro, and not mini. Regular-sized ones. SDHC being included, of course. Sooner or later though, I plan on getting and trying out the Archos and Cowon multimedia players, which are in my opinion the best PMPs on the market. Multiple codec support is always better than always having to transcode to one specific format to get something to work.
I mean, I've gotten used to the that, what with my PSP, my old PLAY-YAN micro, and my helping out my little brother with transcoding videos for his iPod. But really, I would like to be free of those chains eventually.
The iPod Touch sure is snazzy though.