I have two flash drives with different music on (because I cannot hold my music collection on one stick) and I swap and change. I don't actually need my entire music collection but I can't be arsed to pick and choose tracks when I copy them on (one day I will).
I've had problems with album art and found the solution through one of the 208 forums (it's also probably documented here in one of the threads) and am now slowly progressing the fix on all my stored music.
I find that browsing lots of albums on the screen a bit of a pain to be honest (the parrot system in my 207 was better, easier and more flexible) but I'm pleased enough with the sound quality (which is where the Parrot was poor).
I also use the Bluetooth Audio on my Android mobile to play podcasts and stuff and that is fine too.
I can't comment on using an iPod or iPhone as I haven't bought into the whole Apple world and never will.