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Most of the mid-range mobiles (and upwards) now have comprehensive functions built in for music playback. The mainstream mp3 format is there on just about all of the phones, with AAC, AAC+, eAAC+, and WMA and being fairly common as well.
The downside of using mobile phones for music is that normally you cannot share the music. However an increasing number of compact, yet high quality, speaker systems now exist such as the Logitech Pure Fi Anywhere speaker system. The Purefi is designed specifically to dock an iPod yet it also has inputs for other music sources. How about plugging your phone into one of these for a change?
The other cool feature that comes with the Sony Ericcson range of Walkman phones is TrackID™. With this application you can use your phone to record a snippet from a song where you cannot remember or don’t know the title. Then within seconds you have the name of the song, the artist and the album, all courtesy of your mobile.