It's definitely a lot more scratch-resistant then the first gen, but it still, typically, scratches easily (considering the material it's made from). I've had my 32GB touch since January, and for the last two months the only 'protection' it's had is the felt sleeve that came with my 5.5G iPod a few years back - it's totally naked and unprotected when in use. The result? It's only got one single scratch, about 1cm long, just to the left of the Apple logo. My first gen, on the other hand, looks like a total mess and I treated it exactly the same...