Good article today from ClickZ about the importance of product design and how companies that focus on high-quality design rule in the long term: http://www.clickz.com/experts/ad/lead_edge/article.php/3462621
Not that this should be news to anyone in today's iPod world. Apple has proven that consumers want (and will pay a premium) for a product that is thoughtfully designed. The iPod may not have the most features and it may not be the cheapest, but it does what it is intended to do extremely well - and easily.
I wish other electronics designers would take the hint. Design better products that are easier to use and you will sell more of them. Period.