It manages to make a DS Lite look portly!
Currently loading it up with goodness for upcoming trip - my entire Pink Floyd collection, lots of Genesis just to be deeply uncool, smegloads of Kraftwerk, all my Underworld (and I have a LOT of Underworld), several videos, every photo I've taken over the last few months, and it's still only half full; 16 gigs is plenty to be taking with you, and since my last two HD-based players both had drives that carked it, being solid state is a major plus point for me.
Work-wise, I'm now into the redesign of GR++ for XBLA. I already have it running modified for the different aspect ratio and working off the x360 pad as opposed to the mouse, and I'm changing and extending the gameplay; it'll be a much more involved game than the PC-only predecessor. I'm getting all the gameplay working first then I'll overhaul the graphics; we'll likely go for algo generated 3D shapes rather than the hand-drawn sprites of the PC original.