I just bought myself the 3rd gen Touch. It is not what its cracked up to be - for a couple of reasons:
1. I wanted to use it as an address book / contact manager for my customers. You can only sort it by first name or last name. Not by company, city, state or zip code. i'm sure you can dload some other program, but i dont have the time to spend a week loading different programs and seeing what they can and cannot do. very dissapointed.
2. (and this was my fault...) i thought wireless and wi-fi was the same thing. It isnt. You can only get to the internet and use many apps if you are around a wi-fi hot spot. My customers are in the country, or the suburbs. There arent too many hot spots where i would use the touch. And no one has just a data plan that you can buy for the Touch.
3. There is no camera on this either... you can view them, watch videos, but you cant take a picture or video.....W.T.F. (again - my fault for not researching).
All i can say is do what i should have done. REALLY research the product, and see if this is REALLY what you want. (mp3 player - fine; games - great;
live in the city? - no problem. All other situations..................not so much!!
Hope this helps.