The real strength of the IPOD is its software and ease of use. There are some PC configurations where this isnt true. But in the case of anyone with a Mac and many if not most PCs, the software is really easy to use. Someone my wife knows (a programmer) got an IPOD recently. They had lots of issues with the software on their PC. My wife showed them how it worked on a Mac and they went out and bought an iBook. Now they love it. I have a DellPod with the software installed on a Dell. And an IPOD with the software on a Mac. The difference is enormous and the IPOD is a clear winner.
So to a great extent I agree with the "it just works" comment. There are some PCs that due to one or another conflict wont work with an IPOD it seems. But on the ones that work it is seamless and easy. That is why they are so successful in my opinion. Ive had mp3 players since the first Rio. IPOD was the first where the software was easy to use and you really didnt have to think about it.