First: I HATE CASES!!!!!! sorry case peeps nuthin against you guys but I just don't like my products looking so generic once its put in a case. I only use screen protectors and get this:
A Sunglass Bag!!! yup it keeps my Touch and in PRISTINE condition and I can use it in all it's GLORY
( I also use this with my iPhone 3G in a separate bag) !!!! I use an OAKLEY bag ( just cut the tag sticking up on the inside to avoid scratches from the tag ) with the iPod touch wipe inside the bag incase there is a bad smudge. Anyone else do this? I HIGHLY RECOMMEND IT especially if you hate using a case 
A Sunglass Bag!!! yup it keeps my Touch and in PRISTINE condition and I can use it in all it's GLORY