So my iPod touch is now full to the brim and being a lazy person who likes all my music accessible in one place I'm considering other options.

I'm not inclined to get a hard drive player (found them unreliable in the past) so it seems to me the best option is to finally move with the times and get myself a smartphone. Obviously the iPhone is out (see above storage capacity problems) so ideally I'm looking for something which can support a reasonably chunky SD or microSD card. Obviously I'm googling trying to find what I need but I thought I'd ask here in case anyone has been through the same sort of method. So I guess what I'm looking for is either:

a) Something which can play lossless files (this will obviously need a bigger memory capacity and I'm fairly sure doesn't exist at the moment in the capacity I'd require but I could be wrong!)
b) Something with a reasonably memory capacity (at least 128 Gb) that can convert (a la iTunes) lossless music to mp3. Again probably doesn't exist so not a deal breaker in any way, it'll be tedious but I can make separate folders of lossless and compressed music if I need to. So really just something with a good memory capacity.

Obviously I'd like something with reasonably decent sound quality while listening with headphones, don't give a shit about the quality of the phone's speakers. Also I'd like as nice a user interface for browsing through lots of music with (say what you like about Apple, and I definitely have about iTunes, but their actual devices are very user friendly).

So yeah, any tips?