Sorry, I would have posted earlier, but it was a four day weekend and I've been suffering at home because our cable modem is broken. Don't get me started on the damn Cable company (we haven't had internet in over a week).
ANYway. I can vouch that the AV500 is a cool device. I think it's easily the best product ever put out by Archos (though everything's relative). I've had two other Archos products - the Jukebox Recorder and the AV340 (which I still use) - and the AV500 marked the first time I think made something with a solid build quality and a decent design (although it's still a little funky looking).
I think your question may be more complicated. The AV500 comes in two sizes, 30GB (referred to by users as the AV530), and the 100GB (AV5100). 60GB 1.8" drives have not, I believe, found their way into any PMP other than the iPod w/Video (lets not call it the video iPod - it's not). The AV5100 is going to be quite heavy for something you may want to carry around in your pocket. I believe it's the same general size and weight as the AV340, which I have, and I never put it in my pocket, especially in the summer, or I'd end up with a very sweaty leg and pants dropping on one side of my body. It's an attractive sight. The AV530 I had was better in this regard, but it's only for short trips. I now keep the AV340 in my shoulder bag with a bluetooth transmitter for my bluetooth headphones (Logitech).
You may have noticed, but I returned my AV530. You shouldn't worry, it was defective and I know I was in the minority in terms of people who had major problems with their devices. I just decided not to get another one. It's possible I was waiting for the true Video iPod, but recently I decided I would simply not be able to live with the horrible restrictions placed on you by Apple. I simply must have a mass storage device for an MP3 player. It's probably my biggest requirement. Last week I ordered one of
these. I'm hoping it'll get here this week, and I'll write up a quick review when I get a chance.
Anyway, I guess my bottom line is that for me it's not a question of Apple vs Archos. It's a question of Apple vs any MP3 player that doesn't lock you into a service or a piece of software. I highly recommend the AV530/AV5100.