No downside, but I like to restore my iPod every so often just to keep it in shape. Like any hard drive it will tend to get jumbled up a bit over time. I often think people not doing this every so often (every few months or so) can lead to some of the many problems that appear here.Is there any downside to choosing this option or to put it another way, any benefits to restoring the ipod and re-loading all files?
Either way your going to be the same amount of time to load all your music back. Just be careful if you do restore that you don't wipe any ratings etc that you may have. You can always back-up your two iTunes music folder files just in case.