Its not a hoax, or a joke. The iPod in the image below is an iPod classic capable of holding 160GBs of data.
If you had to play by the rules, and only download legal music from Apple, this iPod could become the most expensive item you’re likely to own. It might even become worth more than your car or luxury sailing boat. The calculations are as follows:
160GB = 163840MB
1 Song = Approx 5MB.
So that means that this iPod can hold around 32768 songs.
Apple sell songs at $1 USD per song, so that would mean to fill this iPod with songs will cost you a whopping $32768 dollars.
Lets put this in perspective, would you rather be choosing the color of this lovely car, or listening to your iPod?