You need internet connection or hot spot to stream music..what if when you're in no signal area?...plus, you have to pay each time you stream the song..it's not a good idea to listen to music..
I also have ipod classic..but there are things i complain about the classic ipod..it has no bluetooth..so i couldn't choose a song to play to my multi speaker when i was dinner,at shower,relax on my bathtub,etc..and,it has no built in speaker..
I now stream all my music on my iPhone using Google Play Music All Access.
I never use the built-in pink and white player.
Caching playlists/albums for off-line use is easy. The iPod Touch is really dead in the water at this stage, never mind a 160gb version which will never happen.