actually, i know for a fact that you c an delete videos straight from the touch itself.From the specs page:
* 8GB or 16GB flash drive1
* Holds up to 1,750 or 3,500 songs in 128-Kbps AAC format2
* Holds up to 10,000 or 20,000 iPod-viewable photos3
* Holds up to 10 hours or 20 hours of video4
* Stores data via USB flash drive
No way to manage the files on the Touch itself, but the last bullet makes me believe it can act like a flash drive in "Disk Mode".