I recently lost my 16 GB 1st Gen. iTouch to a video issue; so I am patiently waiting for the new iTouch 3g to hit the store shelves.
As an upgrade from my 1st Gen. the new 3g has a whole lot to offer.
I am not one for wanting to purchase a new iPod every year - A camera would have been a nice addition, but it isn't something I have really been missing either.
I'm more interested in having my iPod last a good 3 or more years. Lesson learned, I will be spending a the extra $ and getting Apple Care this time around.