The views on the Net seem to be split between (a) why buy the 1GB nano when you don't need a screen to navigate 240 songs and the Shuffle is cheaper;
and (b) of course you need a screen! The 1GB nano is worth the extra money over the Shuffle.
Another common viewpoint is that the Shuffle with its low pricing is increasingly an impulse buy.
People will buy one as a present, or will buy one when the already own a bigger (5G / Video) iPod, but want to take it ot the gym without scratching it. The Shuffle is much stronger than the nano.
Interestingly, there is a view that the Shuffle has a better sound chip i.e. [broken link removed] when played through more discerning headphones. I haven't seen any reputable independent confirmation of this.
Also interestingly, Engadget reported yesterday that the 1GB nano apparently has a slightly dimmer screen than the 2GB/4GB models!
