Kathy Schrock has put together iPad apps that connect with Bloom's Taxonomy. It would be interesting to see if any of these are available for iPod as well
Story Nory is a collection of FREE audio books for kids. There is a mixture of new stories, fairy tales, and specially adapted myths and histories. A new audio story comes out each week (this has been true since November of 2005!). Search stories by newest additions, original stories, fairy tales, classic authors, educational, or junior stories. The stories can be subscribed to as a podcast in iTunes, through their iPhone/iPod touch app, via email, or RSS feed. Story Nory offers the text to accompany the audio so that kids can read along.