OSNews

This is a nice added functionality for negligible money. The success of the iPod is also in a large part due to third party development of apps and devices. With podcasting the user becomes an active participant and creates a new culture which only tightens the bond with the manufacturer. A few good apps will serve to make the device an even better value proposition. This little thing is just the kind of tidy app that reduces the hassle of managing your files on the iPod.

wakeupneo has a point in that this kind of application can be gobbled up by the giants [as they frequently have been in the past]. OTOH, if I had some coding ability and I wrote a really neat app that Apple would want to incorporate, I'd be more than happy to sell them the source .
I don't think Apple will sue these guys. It is not necessary and it would be a really stupid thing to do. The reference is for the NDA suit they filed, where I think they have a point [if they don't sue then it's a signal that it's ok to disregard the NDA, if they do sue, they're pounding on the wide-eyed innocent student...], they won't do that here. The app is the acceptance of a cultural phenomenon. Unless it was poorly implemented, which this does not seem to be, dixit Eugenia, Apple should applaud and encourage people with great ideas developing for the iPod.
There's a lot more good things happening on the platform than bad the last few years, why not be happy people can actually enjoy some enabling technology.
I promise that when the cow is finally released from the barn in Redmond and there are some good things to say about it [which undoubtedly there will be], you will find me saying so. That doesn't mean I'm going to buy it, but if it's good, it's good.