Lol, it doesn't huh? So how fast does it access the external storage and is it scanned on each bootup or is the database allocated to onboard memory? Why even introduce another factor that can fail and another step in the process when on hand storage should have been priority in a high level DAP?
Tiny screen doesn't matter when you have a multitude of albums to scan? When you can only look at 3-5 lines of text at a time instead of 15-20? Do you know how that would affect the user experience, the ease and fun factor? Not everyone relies on playlists, people pick on the fly with tags.
You basically refuted what I said giving the same reasons I said they don't work, it was...insightful. It's clear this company didn't think things all the way through without having its targeted buyers in sight. And you know how that's best reflected? By how well this sold in general and most importantly, in this mass-buy.