There's a difference between the Sony Mylo and Apple iPod. The iPod relies heavily on music, videos and photos. The Mylo is like the T-Mobile Sidekick. You can IM others, use Skype, and it's really a communication hub more than anything. The music and photo is to supplement everything. I'm actually very interested in the Mylo. The Wi-Fi feature it has is revolutionary how you can connect with other Mylos to share and stream music.
Microsoft is also using that concept in their new Zune, rumored for a November realease.