First post here. I had the same issue. I was hanging onto an iPod Touch for working out and travel. Basically just used it with Pandora, Tune-in radio recordings, and my iTunes library. The iPod died and I thought about a low end Android phone to replace it.
Target this week is running the Kyocera Hydro; a Boost Mobile 3g phone with a micro SD slot on sale for $9.99. The phone came with Android 4.0.4 and I think that it can be upgraded, I just haven't had time for that. I got a 16 gig card for another 20 bucks. I have no intentions of using the phone and I figured that this was a good bet for a low bucks Touch replacement. Worst case, I figured, is that I got a spare Android charger for 10 dollars.
My impressions; the external speaker is lousy but the phone sounds fine with head phones. Then again I am no audiophile and results may vary. Pandora works fine and so does Tune-in. I had previously ported my iTunes to Google Play music and this has been the only issue with my plan so far. I am having trouble syncing my Play Music library to the phone. It starts the sync, makes it part way and then loops back to 0%. With each cycle it seems to get farther along and it has gotten as far as 45.%
I can't tell you much else. I bought the phone on Sunday, did a quick test of Pandora, thought that I synchronized my Google Play music, and downloaded 6 hours of music from Tune-in. I headed to Big Bend Monday morning and listened to the Tune-in recording with an external speaker. It worked great and I was completely satisfied. On the trip home last night I realized that my Play Music had not synchronized. I discovered that I had not pinned each of my playlists to download to the phone. I did that and tried to sync again. I have been working on that today and I am confident that this is a Play Music server overload and that ultimately all of my music will download and that my goals will be met.
All in all, I am pretty sure that this will work for me for what I am looking for. Then again, results may vary.