I think they were testing the waters to see how Apple would react to a larger and much better-known company putting a competing product into the app store. Unsurprisingly, Apple did the same thing they've always done.

You're going to be the one geek in the room with the Android phone and the Nomad MP3 player, you know. =)

That fine, as long as I have the choice to be that geek. That's what attracts me (and other geeks, I'm sure) to Android the most: I have choices. If I don't like the default media player, I can install another one (or, barring that, write my own) without fear that the Almighty Apple will lay the smackdown.