I got this seemingly trivial question the other day from a prospective client. For those with a large investment in music from other sources such as iTunes, this is fairly important for their digital lives going forward.
Good news, the answer is a resounding, booming Absolutely! ... and not just on Android devices!
Google Play Music is one of the "go to" apps on my phone, tablet, Chromebook and PC. You can get a lot of use out of it for free.
Take for example that you can upload 20,000, yes, you read that right, 20,000 songs, up to your own free, personal music space. All that music is then available to stream to whatever device you log into with your Google account. This means all your 20,000 songs are available to you for free wherever you have an internet connection.
For those music situations where you are away from wifi and don't want to burn up your data plan, you can have downloaded any portion of those 20,000 songs locally to your device for offline listening (limited to how much storage you have on your phone, of course).
While I still have an iPod for use in air and car travel, increasingly I find myself streaming music from Google Play Music. As I type this I'm listening to it from my PC's browser. I signed up for the All Access plan when it first came out so I got the $7.99 / month promotional price, but I would happily pay the $9.99 price as I enjoy the Radio function included in All Access. You may want to give it a shot free for 30 days and see what you think.
That being said, the free version can easily serve as a replacement for your iPod and general iTunes habit, (unless you find yourself frequently listening to more than 20,000 songs <grin>).
I'll be posting up a how to use Google Play Music video, especially in conjunction with iTunes, in the near future.