Quite some time ago, I discovered that it worked really well to listen to my huge (5000 songs) iTunes music library on shuffle. I could listen forever that way and never hear songs too often to get tired of them.
The iPod shuffle follows this principle exactly. If, every day, I get a fresh random squirt of songs from my library, I'll never hear them too often and I know I like them because they come from my collection.
This whole All Mixed Up. Choose to Lose Control program is not a big risk. Apple has already checked out how people use their iPods and many listen on shuffle - a lot of the time. Nice timing to put the shuffle out during get-in-shape season.
We may want to create special playlists for particular needs. The big exercise playlist that we can squirt randomly from. The walk playlist - perhaps a little more mellow and nature-oriented depending on where you are walking. The public transit list. The lunch list.
I still think there's value to having your whole music library in your pocket and the shuffle won't get you there. But, the shuffle would be much better than not having your iPod at all. My guess is that MANY iPod owners, especially owners of the full-sized iPod, will want a shuffle to augment their music listening capability. I do.
The iPod shuffle is a creative solution that leverages Apple's strengths with software, design, marketing and integration. Many are trying to compete with Apple in the digital music market: either with a device or store or device/store. But Apple has enough variables to make it hard. This system is not a commodity and changes all the time. Good luck competing!