I have a DeLonghi "Nespresso" machine that uses capsules instead of pods and it makes great espresso. I believe the pods would make the same great espresso and be less costly. The capsules run approximately 55 cents each where as the pods are 15 to 25 cents less.
I had requested a specific espresso machine that friends of mine were to pick up for me while in Italy but they thought this one was better for an office, which is where I have it now. Bottom line: if you love to drink espresso like I do then stick to a machine that uses pods or regular espresso coffee.
I have a Capresso Ultima, the only problem is that you can only make one shot at a time. It has a good feature: there is an internal waste basket, very helpful. Anyway, I don't think pods are that amazing, to me its just cheating on making the best quality and the authentic espresso.