I agree from a marketing perspective it was an excellent decision for Apple, and no doubt they've made astronomic profit out of it. I don't think it's necessarily best for consumers though. 70Mb is large, but size is not the only problem. Having to go to the trouble of installing it is! You can't just plug into a new machine and go. Don't forget that when you agree to Apple's T&Cs you're agreeing to let them do as they wish with YOUR music. Every track in every itunes subscriber's collection is at the mercy of Apple. I don't want to entrust my music collection to Apple.
I prefer my mp3 device to be a mass storage device. My current player is a Cowon iAudio 7. The main factors in choosing it were sound quality, that it can play FLACs, and the 60 hour battery life. The interface is not as good as the ipod nano G2 I had before it.
On my PC I use Audiograbber, EAC, Foobar2000, Winamp, Audacity. I buy music from beatport, bleep, boomkat, and more recently from Amazon now that they sell DRM free music.
It's not a seemless automated process, but I perefer the control I have, and don't have to worry about my music collection being lost as I'm in control of my backups.