I'm still using my iPod touch 5G. I use it more as a camera than a music player tho. Got rid of my smartphone a couple years ago. I have the original iPad mini with an unlimited data plan from AT&T and my iPod touch 5G. I loaded ios8 on both, and both run fine. Happy with battery life.
I really hope they update the touch tho. I doubt it'll be able to run iOS 9 well when it comes out next fall. It'd be nice to have an iPod touch with a faster chip, 128 gigs of storage and a better camera.
I wouldn't mind if they increased the screen as well. Perhaps a 4.7" or 5.5" version just like the iphone 6 & 6plus. They could even rebrand the iPod touch as an ipad nano.