Yeah, I stopped worrying about carrying everything with me. I have my 120GB iPod classic that houses a good chunk of my music but now I can transfer all of my movies, music videos, and TV shows to the iPad. Actually, with 64GB of storage, that would translate to about 1/3 of the video content I have.
So either way (even if I had a 250GB iPad), neither my iPod nor an iPad would be enough to carry all of my content. Hence why I stopped worrying about carrying everything with me and just started using smart playlists. I go through and rate my music. Every song with a 5 star rating is automatically placed in a "best of" playlist and that is synced to my iPod classic. I then sync music that has never been played so that I can listen to it and rate the content. That playlist is constantly changing, it all depends on when I get content.
Smart playlists have really changed the way I listen to music so that I no longer need a 1TB player to carry around what I want to listen to. Sure, it would be nice to have my entire lossy audio library and video library at my fingertips but that will just never happen. Even by the time 2TB SSD drives come down in cost, my library will have exponentially grown by then.