I have made the decision for now not to upgrade my 60gb 5g ipod. Barring any unforeseen circumstances, I don't think it necessary right now. My library is more than 60gb, but I carry what I like and nothing I don't right now. I think by having the space, I might just carry a bunch of stuff that I am not interested in most of the time.
If the rumors of iTunes video rentals holds true, I may look into a Apple TV.