Oh , one more thing that would make the iPod Touch the best web device ever. A growl-esque application in the settings, and letting apps run in the background. This would be fantastic for stuff like Twitteriffic, AIM, maybe Pandora for the background... Oh, and all the location-aware social networking.
And yeah, landscape everywhere would be nice.
IN terms of hardware, I have some nice ideas for the next iPod Touch.
1. Bluetooth! (for keyboards and stuff)
2. Better battery life. With my old nano, I would use it for a week, and then need to charge it. But I'll need to charge my Touch every night.
3. Quicker boot up, maybe?
4. Perhaps access to the 3G, or EDGE networks? But make it optional.