What am I missing? Wouldn't Apple make a bundle by selling an iTUnes app? I would gladly pay a few bucks for the app as I sure every non-iphone user would. I mean I got it for my PC, so that horse is already out of the barn. 95% of my music is AAC protected and I can't play it anywhere except my ipod. Is there hope out there?
Apple makes bundles selling iPods and iPhones, not as much of a bundle selling actual music. They provide the music store to people who have bought their products, not competitors' products. They would rather you buy songs from the Amazon MP3 store for your iPod than buy songs from the iTunes Music Store for your Eris (though they'll take the money if you really want to bother.)
As others have mentioned, the entire iTunes Store catalog is now DRM free. For almost every DRM protected song or album that you purchased in the past, Apple offers a DRM free version at a higher bitrate for a (I think) 30 cent premium. I buy so few songs online - most of my catalog comes from those shiny, circular things - that I think I paid a couple of dollars for the songs that I repurchased.
To answer the question about why I use iTunes; well, that's easy:
1. I use a Nano to listen to music. I do not use my Eris. First, the music player is pretty bad; second, I want my phone to have enough battery life to do those things that I really need it to do: make and receive calls and texts; get emails, occasionally browse the web.
2. I have a iPod interface in my car. I could get it to work with the Eris - I have cables hat could connect to the earplug adapter - but the steering wheel controls in the car can control which playlist I listen to, can skip backwards and forwards through playlists, play and pause music, all without touching or even looking at the iPod while I am driving. I could definitely not do that with the Eris.
3. I have a number of smart playlists in iTunes that manage random music mixes on my iPod, in part based on play counts, song ratings, and last time the song was played. They sync with the Nano, and, more importantly, as I play songs on the Nano, the smart playlists change as I listen to more music.
4. (As for the genre item listed above, I can do exactly that by setting the iPod to random play and just playing after selecting the genre. Just go to one of the songs in the list at random and it will go through the songs in random order.)
5. Carrying the Nano as a second device is hardly taxing - it's far smaller than the Eris, for example. I can easily fit both in one pocket.
6. I actually use Nike+, so having iTunes and an iPod is rather helpful/necessary.
7. I like iTunes as a podcatcher.
I realize that these are my reasons, and I'm not suggesting that everyone should do so for these reasons, but I prefer iTunes to anything else that I have tried to manage music, and I have a pretty high equity in iTunes right now. (Not equity in DRM music - equity in play counts of music, ratings of songs, ability to play music from iTunes easily from Front Row on our Mac Mini throughout the house, etc.)
Oh, and to answer an earlier question: yes, indeed. iTunes Music Store purchases in AAC format that are not DRM protected can by synced to the Eris by doubleTwist and they play just fine.