iPods curently record at only a 8kHz sampling rate,
unsuitable even for clear dialog recordings. That's kept me on a
MiniDisc as my primary recording medium for music and even interviews.
However, Phillip Torrone points out at hack-a-day, you can get around this limitation by installing iPodLinux
on your iPod. That's a little less scary now that the hack supports
choosing between Linux and Apple's software each time you start up.

More interesting is why Apple disabled it in the first place: technical
oversight, or intended to prevent bootlegs of concerts? Either way,
let's hope this gets worked out in a future iPod revision.

Want more on iPodLinux? Read xlr8yourmac's review
— but be prepared for some bad news in this revision, with poor music
playback support and weaker battery life. (Thanks to the incomparable
Phillip Torrone for all these suggestions!) I'll stick to my MiniDisc
for now, and wonder why that device has a digital in but no digital
out. Sigh.