I have a 6th gen 8GB iPod Nano (the one that could be put on a band and used as a watch) but its sleep/wake button ans the volume up and down buttons are unresponsive, gummed up with who knows what.
So I bought a 16GB 7th gen version from a secondhand online dealer which arrived today. It's very small, only twice the size of a CompactFlash media card. But it nhas Bluetooth 4.0, a Lightning port and headphone jack, volume up and down plus play/pause and sleep/wake buttons that do work. The other controls are via the 2.5-inch glass touchscreen. I've loaded up 6GB of music and 1.5GB of videos onto the thing and it will replace the 6th gen in the car as my main music storage.
The pic shows it beside a CF card for comparison purposes.