Reddit reviews Toshiba 240GB 1.8” MK2431GAH Hard Drive

You could fit your whole collection on a modified 5.5G ipod. I went through a similar search. Slightly larger capacity needed in my case, but I wound up getting an iPod 5.5G and installing a 240GB drive and Rockbox. You wind up with something that has pretty good capacity, is for sure apple hardware but is much more flexible and configurable (since it is rockbox instead of ios). Rockbox is slower and slightly less intuitive out of the box than the standard iPod firmware but you can make it look however you like and you can really customize the UI very thoroughly. I still have spinning disk media in my solution. My drive seems to be holding up pretty well and didn't cost too much. For a bit more money/effort it looks like you could use an SSD or SD cards.

Toshiba 240GB 1.8" MK2431GAH Hard Drive by Toshiba http://www.amazon.com/dp/B009A6PT9M/ref=cm_sw_r_udp_awd_K6jntb09V4AY1