Then you, by your admission, are not the intended customer for the iPod Touch. It is no secret that iPod Touch is marketed as more than just a music player. It can also surf the web, play videos, do email, run gazillions of apps and games like Angry Birds, and of course can take pictures and videos too. All those functionalities sorta explain the high price of the iPod Touch....because it's a lot more than an MP3 player.
You should have been able to figure that out long before now, that is was not suitable for your needs, rather than debating with other users here as to why "iPod Touch just doesn't cut it for you". If you just need an MP3 player.... lots of generics out there, cheaper and with larger capacities. I myself got a Creative 'Zen' MP3 player years ago before I decided embracing iPods. It was drop dead cheap, reasonable capacity for its time, and it was one of the "semi-decent name brands" where I can trust it to last a bit longer than some junk Taiwanese knockoff brand like iLuvMusic or somesuch.
To be honest, the days when Apple made iPods that simply focused on playing MP3s or iTunes AACs is long past. The era of iPod Classics is pretty much over. Can't really blame them, as the market for that kind of device is small. Blame it on the market. Because the "market" today has a preference for mobile gadgets that can do everything and anything, all packed into a singular small device that fits in a purse.