I'm going to keep track of the differences between the iPod touch 5th Generation and the iPhone 5. If you have something to add, please tell me.
Processor
The iPhone 5 has a new Apple A6 chip which has been touted as the fastest mobile device chip yet. It has 1 GB of RAM, 2 processor cores, and 3 graphics cores.
The 5th generation iPod touch has an Apple A5 chip. This is presumably the 32nm chip Apple shipped with the $399 iPad 2 and the 1080p Apple TV. It has two processor cores, and 512 MB of RAM.
Display
The displays of both the iPhone 5 and the 5th generation iPod touch are 4" in size. They have a resolution of 1136x640 and are IPS displays. They also both have fingerprint resistant oliophobic coatings.
Camera
The Camera of the iPhone 5 is an 8 megapixel camera. It can also shoot 1080p video. It has an LED flash and a sapphire crystal lens cover.
The camera of the 5th generation iPod touch is a 5 megapixel camera (as seen on the 3rd Generation iPad). It can also shoot 1080p video. It has an LED flash and a sapphire crystal lens cover.
The front cameras of both the iPhone 5 and the 5th generation iPod touch are able to take 720p video.
Networking
Both devices have the capability for 802.11a/b/g/n WiFi at 2.4 and 5GHz as well as Bluetooth 4.0.
The iPhone 5 also includes an LTE radio, a GSM radio, may include a CDMA radio (depending on carrier), as well as GPS and a compass.
Extras
The 5th generation iPod touch is 6.1mm thin, while the iPhone 5 is 7.6mm thin.
The 5th generation iPod touch includes the iPod touch loop.
Both devices include a Lightning to USB cable and Apple Earpods, and the iPhone 5 includes a USB Wall adapter.
The iPhone 5 is available in Black & Slate or White & Silver.
The 5th Generation iPod touch is available in Black & Slate, White & Silver, Blue, Yellow, Pink, and (PRODUCT) RED.
Processor
The iPhone 5 has a new Apple A6 chip which has been touted as the fastest mobile device chip yet. It has 1 GB of RAM, 2 processor cores, and 3 graphics cores.
The 5th generation iPod touch has an Apple A5 chip. This is presumably the 32nm chip Apple shipped with the $399 iPad 2 and the 1080p Apple TV. It has two processor cores, and 512 MB of RAM.
Display
The displays of both the iPhone 5 and the 5th generation iPod touch are 4" in size. They have a resolution of 1136x640 and are IPS displays. They also both have fingerprint resistant oliophobic coatings.
Camera
The Camera of the iPhone 5 is an 8 megapixel camera. It can also shoot 1080p video. It has an LED flash and a sapphire crystal lens cover.
The camera of the 5th generation iPod touch is a 5 megapixel camera (as seen on the 3rd Generation iPad). It can also shoot 1080p video. It has an LED flash and a sapphire crystal lens cover.
The front cameras of both the iPhone 5 and the 5th generation iPod touch are able to take 720p video.
Networking
Both devices have the capability for 802.11a/b/g/n WiFi at 2.4 and 5GHz as well as Bluetooth 4.0.
The iPhone 5 also includes an LTE radio, a GSM radio, may include a CDMA radio (depending on carrier), as well as GPS and a compass.
Extras
The 5th generation iPod touch is 6.1mm thin, while the iPhone 5 is 7.6mm thin.
The 5th generation iPod touch includes the iPod touch loop.
Both devices include a Lightning to USB cable and Apple Earpods, and the iPhone 5 includes a USB Wall adapter.
The iPhone 5 is available in Black & Slate or White & Silver.
The 5th Generation iPod touch is available in Black & Slate, White & Silver, Blue, Yellow, Pink, and (PRODUCT) RED.