"Jack of all trades..."4.0 starson by Applerod
Pros: Seamless, intuitive touchscreen interface (and OS); wonderful display; thin and portable; crazy amount of features; app access
Cons: No GPS (or 3G option); OS lacks some depth; no custom graphic equalizer or audio enhancements; portability means relatively small screen; battery drains rapidly with gaming and Wi-Fi use; camera is poor; includes crappy headphones but no wall charger
Summary: The iPod Touch is my first Apple device. It's also my first touchscreen or true multifunction gadget, so the thing is a little hard to evaluate.
The phrase "Jack of all trades, master of none" comes to mind though in this case the first half of that expression is the truest and most important. Is this "the best" pure portable music player? Not necessarily, because the iPod is no longer centered around just playing music. Sure, the interface is stellar when scrolling through a collection but the device is missing some basic features like a custom equalizer or external buttons to skip songs. That alone combined with the price would be a deal-breaker if it wasn't also a: video player, web browser, camera/camcorder, gaming device, communicator, clock/calendar/calculator/voice recorder/note-taker and several other things. That's just out of the box of course. The expandable functionality of the iPod Touch via apps is the other half of the equation.
In trying to balance so many functions, features, and characteristics, the device is really one giant compromise. The iPod Touch is sleek but you have to fish it out of your pocket just to skip songs. The device is small but so is the screen -- not the best platform for web browsing or watching Lord of the Rings. It's thin but I wouldn't mind it a little thicker if that meant better battery life (or a better camera.) The operating system is simple and accessible, but also pretty shallow.
Overall, I'm extremely satisfied with the newest iPod Touch. I could nitpick its deficiencies forever, or focus on how smartphones are rendering this device obsolete, but that would take away from the fact that for me the iPod Touch is very handy and flat-out cool. (Sidenote: The 64GB model IS expensive, so for many people a better value might be had in the 32GB model.)