I wouldn't call it a disaster. It's nice to have all of my media on one device, something I can't do with my 8gig iPhone. I am a fan of the EarPods for lying down and watching Netflix, the external speaker isn't half bad. I haven't tried the loop, being that I can't attach it with my case.
I do have to say, I'm not sure how I feel about the thinness. Having an iPhone 4 and previously a second gen touch, you can't even feel it in your pocket. Makes me a little leery at times. :P
I know this an iOS thing and not just the iPod touch, but I wish the landscape keyboard went edge-to-edge. That's my only gripe I can think of, besides the lack of a ambient sensor.
13" early 2011 MacBook Pro; iPad 3rd. Gen 16GB Black; iPhone 4 8GB White, iPod touch 5th. Gen 32 GB Black