Earlier today, Apple announced new iPods and a new version of iTunes to go with them. You can watch the event via Quicktime here. The iPod updates are just your regular updates (bigger sizes, new colors for the nanos, iPod touch gets a little speaker, etc) that they do each year at this time.
In iTunes, the big new feature is something they call ‘Genius’ that makes music playlist recommendations and of course, iTunes Store purchases, that you may want based on the music you have already in your library. As more people use ‘genius’ it gets smarter based on what others listen to. Kind of neat but so far it seems to only work well if you listen to fairly mainstream music. I tried a few random artists to see if it would recommend something else to listen to (Sinead O’Conner, Bedouin Soundclash) and it couldn’t recommend anything. Perhaps as the genius gets smarter, I’ll finally be able to find something to go with my Sinead O’Conner collection.
The new feature I really like is the Grid View. It’s nothing revolutionary but it does make your larger, growing iTunes library easier to see and find albums you want to listen to in a different way than the usual list of text that I use typically.
The iTunes update is a free download – unfortunately they don’t offer free updates for previous iPod users. 
But your current iPod is fine – there’s no need to go get a new one. Really.
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Apple Releases New iPod nanos, touchs, classic and iTunes Update
In iTunes, the big new feature is something they call ‘Genius’ that makes music playlist recommendations and of course, iTunes Store purchases, that you may want based on the music you have already in your library. As more people use ‘genius’ it gets smarter based on what others listen to. Kind of neat but so far it seems to only work well if you listen to fairly mainstream music. I tried a few random artists to see if it would recommend something else to listen to (Sinead O’Conner, Bedouin Soundclash) and it couldn’t recommend anything. Perhaps as the genius gets smarter, I’ll finally be able to find something to go with my Sinead O’Conner collection.
The iTunes update is a free download – unfortunately they don’t offer free updates for previous iPod users.
But your current iPod is fine – there’s no need to go get a new one. Really.