Sony's Walkman X has superior audio quality, a beautiful OLED display and effective noise-canceling. Brian Ashcraft, writing for T3:
It sucker punches the iPod from the off with cracking sonics. ... This is a superb PMP. Things like a poorer interface and lack of Mac compatibility put it at a slight disadvantage to the iPod Touch, but its screen and audio quality really shine. After numerous false starts and a general drubbing from the iPod, the X-Series puts the Walkman right back in the game.
It's also Sony, so you'll probably be begging for software and firmware updates, let alone an App Store.
Sony X-Series Walkman MP3 player exclusive review, pics, video [T3. Pic via Akihabara News]