If they really want the old-school analog experience, you need a turntable and a cassette recorder so you can make mix tapes for your friends. We didn't have 'playlists', we had mix tapes. Also, to have in the car for road trips. Also, I must go and yell at that cloud now. Excuse me.
I would be pretty happy if I could get the Android version of Winmmp back... or something very similar... my phone has as much storage open as the biggest ipod I ever had, and it's pretty much always with me. That said, it's just easier to use a streaming service... the issue is that new music discovery just sucks at this point.
