The i-Pod killer

It's the only thing that will challenge the market strangle hold the iPod currently enjoys...it's the mp3 enabled phone.
Within the next 3 yrs the sound quality on phones will be up to much higher standards than it is now, plus the memory will increase and that will help to up-root some Apple dominance in this industry. As a nice off shoot, the better the phones get the more other mp3 manufacturers will have a fighting chance.
Personally I have a 3 yr old iPod. It's great but the major drawback is that my music is locked in a format I can't easily interchange with friends or other devices. I don't think I'm alone. In fact, there's a lawsuit currently going on in Germany to force Apple to open it's code and make your music yours again. We'll see if it works.
Anyway, if you were given the choice to have music tied to 1 player and not shareable, or shareable and easily transferred across multiple interactive formats which would you choose?

No question...