Santa was very good to me this year and brought me a 30GB iPod. The new iPod's have music, photo, and video playback capabilities. Since I had heard that you could only download photos using iTunes I wanted to test and see if I could load images some other way. I had a Belkin Digital Camera Link that I had previously purchased to use with my daugters G4 iPod so I decided to give it a try.
Good news! The Digital Camera Link works perfectly with the new iPod to download image files. Here's a photo of the setup:

I'm using a card reader but it can be connected directly to a digital camera. It took about 21 minutes to download a full Sandisk Ultra II 1GB card. The battery on the iPod was not fully charged and still showed more than half charge afterwards.
Bad news. Images loaded this way cannot be viewed on the LCD screen. Only files loaded using iTunes can be viewed. This is too bad because photos viewed on the 2.5 inch LCD look quite good. On the other hand, it wouldn't be a big issue for me because I only shoot RAW and they wouldn't be viewable anyway.
Bottom line: I would use the iPod on short trips or where traveling light was important. I'm not suggesting that iPod is the way to go if you're looking for storage on trips but if you already own one or are considering buying one it is an option.