I think I prefer the N2 ipod interface over the N3.
I just recently ditched the N2 and bought an N3. Mainly because I wanted the better ipod interface. However, it looks much better but I really hate the functionality of it. Example: I used to use the PGM button to pause and now I can't. I used to use the up and down arrows to switch between playlists and now I can't. I have to go all the way into the ipod screen, press top, then press playlist, then press the playlist I want, then choose a song.
What used to take me 1 second now takes 10 seconds. I'm starting to think the tradeoff wasn't worth it.