I worked for Creative for close to 5 years and helped launch the NOMAD series.
It's like this: You can buy a Hyundai Elantra for $12k or you can buy a MINI for $18k. Is the MINI really worth that much more? in a word, ABSOLUTELY.
User interface, software experience, driver reliability, Firewire compatibility, form factor, "cool" factor...the IPod is worth every penny over a Nomad.
The Nomad also can't play AAC files from the iTunes music store, which is worth ten times what they charge for using it (it's free). Download iTunes first. Try the music store for auditioning songs and compare that experience to buymusic.com or any other online music store and you'll see why people are swarming to iTunes in double the numbers anyone else is getting.
/// The Kurtster /// 
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