You can get the music off, no problem. All the files are in hidden folders... if you have an app that'll snag all the mp3's out of them. I use mp3tag to do it. The next hitch is, of course, the convoluted naming sequence that iTunes gives your muzac. Also manageable!
Heres the process I use:
First, I copy all the folders off the iPod. The folders themselves, not just the files (no mp3tag yet). The reason why we're doing this, and not just getting the files is because some of the files are duplicately named, but in different folders. If you put all the files into one big folder, you'll get filename errors. So now, in mp3tag, you're going to convert tag information into new filenames for all the mp3's. (Make sure you're renaming with enough info to have all distinctive filenames. Then, in mp3tag, you can move all the mp3's to one huge folder. As for the final step of shuffling all the songs into proper folders based on artist/album info... thats up to you. iTunes will do it, if you add that huge folder and consilidate your library. Mp3tag might do it too, but I havent experimented with that option... my library is fragile enough just trying to keep it from becoming a gigantic mess of different naming schemes.

Anywho... this might help, might not, but I know I like my iPod for its speed, large screen, and ease of use. I dont need drag-drop functionality, since I generally keep my tunes fairly organized in folders, and syncing on plug-in works excellently for me.
Tsk tsk on using Apple and 'full control' AND 'freedom' in the same sentence. Doesnt work that way.

By the way... alternative software for your iPod does exist. I havent played with it, but apparently RockBox is a very good alternative that *does* offer drag-n-drop functionality, as well as normal file naming. Dont have a link, but a quick google will get ya what you need.