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bahamut
Yup. It's a disaster. I keep laughing when I hear iTunes is a great model for other apps. HA!
It made a lot more sense when the choices were simpler, but it has not been thoughtfully evolved so much as "bolted into" -- back when the first minis were 1GB devices and any there were no books, apps, pictures etcetera to compete for entries in the file system it was much easier to just "sync it all" -- now that method of using a full blown computer to hold the whole enchilda of "content library" is cumbersome and I am sure that Apple is spending some of its cash on alternatives.
Like "New Coke" anything that replaces what ever crap people have gotten used to will create LOTS of bitching and moaning, as well as some gnashing of teeth (IT BROKE MY LIBRARY) and rending of garments (I thought I would NEVER say it by NOW I AM GOING TO GET A ZUNE...) so Apple has not much incentive to make radical changes. Maybe when something the size of the current Nano with all its funtionality AND that of a 3G iPad AND a microprojector becomes the new "standard"....