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FYI, you can store photos on a nano as well.
Also, I have an assload of music - probably a Richard Gere assload. Just tons, and I don't hide it well. I use a nano, because the portability makes up for having to reload it when I want to. The nano still holds over 3 days of music, and I carry it in a wallet w/ my ID and cards so I can listen to it at lunch, never forget it at the gym, etc. It really depends on how often you'll have it docked/will want to reload it, or whether you'd rather have your entire collection in one place.
There are definite positives to both, but both can handle photos equally well.
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