Good Gaming for Little Kids, Good Backup Computer for Adults
I've looked at my usage patterns and I simply don't use my 5th gen for pictures. When I purchased it, I thought "great, now I don't have to buy a compact camera," but as the built-in smart phone cameras got universally better, I found myself always using the smartphone cameras because I could email the picture or upload it to FB or it would upload itself to whatever cloud I was hooked up to without having to wait for a wifi connection. (My smartphones have been Google Galaxy Nexus, Nexus 4, Lumia 620, all off contract).
What I DO use the Touch for is music (I almost died paying the price for the 64gb edition, but I knew the whole point was to have a device that could store enough music locally) & Kindle - it is great for both. If I am lazy in the morning I read FB updates, GMail, and browse blogs in the browser, but honestly it is a pretty tiny screen for these purposes and really makes my eyes and fingers (double tap and pinch zoom and scroll) work out. If the Mini had Retina, I would have ditched the Touch for these secondary purposes a long time ago (but not for Kindle and Music, simply because the Touch is "palm" sized and the Mini is still less "handy").
But what ultimately keeps the Touch in my gadget ecosystem is its amazing ability to serve as a secure back-up computer if I am on the road and my cellphone is grabbed out of my hands, or my laptop is stolen out of my hotel safe/luggage etc. Think about it - there are banking apps, stock trading apps, the browser will get you to all your key websites - it can actually serve as a (somewhat painfully small) computer until I am re-connected with something larger. What a great 3.10 ounce investment (3.04 ounce for the new one). When I travel to SE Asia, where the carriers allow you to tether/hotspot since they are on gb plans and not unlimited, I log out of my GMail and Chrome Sync just in case my phone is grabbed out of my hand while still on, and know that I can use the hotspot feature to use the Touch back at the hotel, if the wifi at the hotel is dodgy. Voila, some degree of security.
For these uses - the new A5-chipped Touch is just fine, and 16gb is enough to download a reasonably culled selection of music when I can't use a cloud player.
BUT FOR KIDS AND TEENAGERS there could be some problems. Keeping the front facing camera was brilliant, because my family has gotten hooked on FaceTime - it is a lot easier to use than Google's video. (And in the Apple app universe I still have Talkatone and Viber for calls, messages.) BUT the resolution is too low for good "selfies" or self portraits which teenagers love. And for kids - sub 10 y.o., as my two are (6 and 9) - the memory is too low. Both my kids download big games and have to unload existing games on their 16gb iDevices (iPad2, iPad Mini).
So while this is a great device, I would have liked to have seen a couple of changes -
+ start at 32 gb - ditching the rear camera was enough of a product differentiator;
+ upgrade the front camera - this should have been done across the line - to at least 3 megapixel, for good "selfies" even if the resolution was restricted to HD (1.2 mp) for FaceTime (and a front flash would be brilliant!;
- or -
+ just keep the price at $199, it would be very appealing at that price, to have access to the App Store game universe which is still lagging on Android tablets.
But I'm sure Apple knows there market much better than me. If I didn't already own a 5th gen, I would wait for these to either go on sale at Christmas (you know, the Target etc. "gift card with purchase" deals) or buy a refurb. For $199 what can match it? - there simply isn't anything in the "palm sized" niche in Android (other than a phone, usually at a much higher cost).
BTW I got the Lumia 620 simply because it would take a 64gb micro SD card, on which I could load all my music. It cost about the same price as this new Touch - I used it for a phone in Asia, and as a "sort of" Touch (music player, Kindle, emergency browsing) on wifi only over here. Storage didn't mean as much to me before, it means a lot to me now!