I would recommend the Palm over the MP3 player, it has many more features, and is much more versatile.
You can install any MP3 player which you please on your PDA and expand it up to 128GB with a Secure Digital Card (which is cheap). Plus the Palm TX has a bigger screen than the Ipod video. I also believe that Ipods are overpriced. The Ipod video costs more than the Palm TX would even with a big Secure Digital card. You can browse the internet on your Palm TX while listening to MP3s. Also remember that Ipods have irreplaceable/non-upgradeable hard drives.
There are Secure Digital cards with up to 128GB storage capacity. Plus you can replace or keep extra Secure Digital cards and swap them with ease if you want to, once your Ipod gets full, you will have to delete files, instead of simply keeping an extra SD card.
You may even be able to install a graphic equalizer on the Palm, don't forget about other plugins. You can also install Linux on it.
I was thinking about buying the Palm TX myself.
Tell me if you buy it.