Having used the droid quite often due to my old job, you
might not be too satisfied with the music app when compared to the iPod app on your touch. I've also never been a huge fan of its touchscreen and both keyboards (virtual and physical). I'd say hold on to your iPod touch. In cellphone sales, I used to position my sale of these smart phones as a way to lighten your pocket by keeping your iPod at home, but I ended up finding that despite having devices like the droid or blackberry, those with iPods continued using it and carrying it around.
I don't know whether that's more of a credit to apple and their marketing, or moreso a lack of decent music apps on these other phones. Though, even with my iPhone I haven't given up my touch, as 32gb simply isn't enough for me. A 64gb iPhone would be fantastic for me, sorry for going o/t.