iPod touches can't keep a constant connection to internet once they're out of range of said base-station. The iPhone's use constant connections to 3 main cellular networks, 3G, Edge, and GPRS. This is mainly why we pay monthly fees, to gain this unreal network onto our devices. iPod touches would need a monthly plan to get a constant network connection, which is basically pointless.
I may be totally off, if so then ignore me. Just a thought.
Edit: I did forget, maybe this could work if Apple sent up a satellite. But really, why would they?
Well, Wi-Fi and/or cell networks can help make the GPS information more refined or update faster. But the bottom line is if the iPhone, like any GPS device, was out of range of any kind of communications signal (like cell networks), the GPS would still work.
And as for a satellite, Apple doesn't need to send one up there. Neither did Tom Tom. Or any GPS company for that matter. The satellites are already up there, and were sent up there by the United States government. They are open for anyone to use. Any GPS device you buy gets its location information from the government satellites.
This is true, except the map data would have to be stored locally on the device. GPS applications for mobile phones like Google Maps pull the map data in real time from the cell network. Standalone GPS units (Garmin, TomTom, etc.) store the map data locally.
True as well. Any GPS application though that comes from the App Store will have the data stored locally since they can't use the Google Maps for it. A major GPS unit provider (I think TomTom) announced that their application will host the map data locally, at just over a gig or so. So the iPod Touch could very easily function as a GPS device, you would just need to sacrifice the storage space for the maps. Although as you said it may not work in Google Maps, you would probably have to get a third party app from the App Store.
Although I still think you won't see this feature on a Touch until the 4th generation at the earliest, possibly never.