Yes, only 8Gig built in, but I am running my Clip+ with a 64Gig micro SD plugged in and it works fine. 64G microSD is only $30 these days and you can carry a fair amount of music on one. Not to mention that you can carry several if one does not hold enough.
The Fiio X1 doe not necessarily sound better than the clip.
Check out ClieOS's review : http://www.head-fi.org/products/fiio-x1-ultraportable-hi-res-dap/reviews/12014
"Overall, you are looking at a DAP that is roughly on par to iPod nano 7G and Sandisk Clip+ / Fuze. The major difference are of course the high resolution support as well as a more powerful amp section"
Yes, X1 is great mp3 player but there is no chance for drop even with big number of votes. In another vote was over 300 votes for x1 and stuff massdrop shutdown votes.