I just got the 60 GB video ipod as well. I wanted the space [I currently have 40 GB of mp3 on my HD, though I am working on purging it], and after using itunes and integrated podcasting, I wanted to stick with that ease of use/compatibilty.
The video isn't the major feature for me, but it's a pretty cool bonus--I watched a Strong Bad cartoon today in the parking lot at work before coming in. There's lots of free video content, either samples of 'mainstream' stuff or free videopodcasts. Of course, some of them are better than others. Ask a Ninja is stupidly funny.
When I did my research, the 60 GB 5G ipod was the third cheapest 'price per gig', and the two cheaper ones were both refurbs.
Itunes--and the ipod--works fine with 'your own' mp3s. None of my collection was ripped via itunes, and I haven't paid for any content from the itunes music store. In fact, itunes is doing a damn good job of organizing my tracks, and with a couple free/lowcost plugins, I'm adding lyrics and album art very quickly and easily. You don't need an ipod to use itunes, you don't need to use the itms to use itunes, but of course you can.
You use itunes to 'import' your tracks into its library/interface; you can choose to let itunes manage your tracks [which moves them into a default itunes folder, attempts to name them consistently, but doesn't otherwise 'change' them from mp3], but you don't have to.
I think if you get an ipod you 'have' to use itunes [which is free software], but other than that, you can use your own mp3s downloaded/ripped from whereever [up to 320kbps bitrate].
You can go ahead and download itunes right now and play with it with your own mp3s or download podcasts without having an ipod, just to get a feel for it. I know people who use itunes and use another type of mp3 player [though they have to do some tricks to get content on their players].
Your first decision of course is size/portability versus storage space. Me, I will primarily use it at work, at home, or in the car, so I don't need the solid state flash memory ones or the smaller size [though even the 60Gb isn't 'large', it's about the size of a pack of cigarettes, but half as thick].
Cheapest regular price I saw when researching, for a new unit from a legit retailer, was 373.99 from Amazon, and of course no tax and free shipping. However, I got mine from Target.com. I had to pay tax and shipping, but they were 20 bucks off last week, and I found a 10%-off coupon code, and got about 16 bucks back from ebates.com; so after all that, I got the unit with ta and shipping and an extended warranty for less than the price of the unit itself from Amazon.
If you want to be exposed to more ipod-centric information than should be allowed to exist, check out this website
http://ilounge.com/
and the forums
http://forums.ilounge.com