We have a Lavazza A modo Mio, made by Saeco. It cost about $300 Jan 2012 and they threw in the $100 milk frother. The milk frother lasted about 6 months before getting water into the base. The $25 Aldi replacement lasted 5 min before same happened. When then spent about $100 on a Breville milk frother which allows the frother jug to separate from the engine part, so it can go in the dishwasher. It's awesome too

the pods cost about $12-13 per box of 16 from the Good Guys. We buy about $50 of pods per month. It can be expensive and it's certainly environmentally unfriendly. However, the coffee is great, it's convenient and less messy than an espresso machine. We use the pod machine a lot more than our old espresso machine.

The coffee is fabulous and it's not Nestlé
This is an old thread but today I discovered that biodegradable pods exist and is so exciting to me - at my new place of work they have a Nespresso machine (I won't by Nespresso pods (which they claim to recycle) as are Nestle but resigned myself to using the machine as is already there). I had been using some other pods from Woolies (only 6 pods a week) but I wasn't keen on the waste aspect, but hadn't found another method for coffee at work (most places with ideas instead of pod machines recommend stove top things which aren't an option at work). Anyway today there was an article on the Conversation about pod coffee - and it mentioned the Honest Coffee Company in NZ which sells biodegradable pods (fully biodegradable to the point of biodegrading 1.5
years earlier than an orange peel) - so am going to try them out - is not as cheap as other pods but still cheaper than buying a coffee from a coffee shop if there is one available, and as I only use 6 pods a week is good enough for me.