From a purely logical point of view, option 2 would seem the best to me. You are going to end up with one big iPod and one Nano either way. By getting the black Nano you would gain only capacity (and maybe some cool factor), but you still have the much bigger Photo, for times when you need more than 2000 songs. With optin 2 you get capacity and video playback, so unless you envision a need for more than 500 songs but less than 10000 on a regular basis, you will get more from the video iPod.