I still have a iPod. I replaced the battery and the hard drive for a SD card and its still a great way to listen to music over a nice pair of headphones. I plan to make a few more so I have enough for the rest of my life.
Phone + Bluetooth is more convenient but something about the experience of the iPod, perhaps the lack of distraction makes it more visceral.
Modern digital audio players (DAPs) exist. Basically an iPod with an upgraded DAC and amp, and optionally WiFi and Bluetooth for direct streaming from Tidal or local media server or from your phone. I also use mine as a Bluetooth receiver for my TV audio when watching late at night.
Phone + Bluetooth is more convenient but something about the experience of the iPod, perhaps the lack of distraction makes it more visceral.