There can be, if you know what to add to it. Not technologically (who needs to watch movies on a 2" screen anyway?), but artistically. Enter the iPod case.
Forget anything sold by Apple. To have your own piece of flair, get a fancy-schmancy one from MOMA (left), or find a handmade one on Etsy. There are a bunch of designer ones out there, from the Gucci/Kate Spade/Vuitton crowd, but those are boring.
If you want to be unique, make your own. See what others have created on Craftster and get instructions too. Or check out the classy ones at Pixel Girl. Then go show that third grader what cool really is.