I once had this dilemna when my parents asked me to choose what iPod I wanted for my birthday, I wanted both but I ended up choosing a red Nano. But luckily, someone gave me a free iPod video right after I ordered the Nano, so now I have both. Btw, I always use them during class hours and the video is not hard to hide.
You can do the same thing with most cellphones now, and you can watch videos on the Nano too if you put Linux on it So really the iPod video is almost useless in this day and age.
Since I'm a movie person, I love my video. The quality isn't bad, and I thought the small screen would be a let down but it really comes in handy when I travel often!