^^^ Yes, it's completely different. With the Squeezebox:

1) You get as much storage space as you need. I use a 500GB drive, for example.

2) You get much higher quality sound, particularly if you ever get an external DAC and rip your CDs in a lossless format.

3) You get a much higher degree of control over your music, e.g. the ability to browse and search through your collection by remote control.

4) You get Internet radio (one of my favorite things about the Squeezebox).

5) You can play FLAC files and other formats not supported by the iPod (at least not without changing out the software).

Don't get me wrong, I love my iPod - but I love my Squeezebox more. It has completely changed the way I listen to music.