It's still steel. The wifi antenna is likely hidden in the bezel around the rear camera like it was in the iPhone 3GS I believe
Although the iPhone 4 has two discrete antennas: one for wifi and one for cellular, which is why the band is needed to separate the two. Since the iPod has but one antenna, maybe Apple was able to use the stainless steel backing as an integrated antenna.Well, if that were possible there would be no need for the antenna bands on the iPhone 4. The back was plastic on the 3GS, so the signal could transmit.
Hum...the back is till steel right, and the other parts of iPod Touch are still plastic and rubber... I guess
iPod touch has an all-new design that makes it the thinnest, lightest, most amazing iPod touch ever. Holding one is all the proof you need. With its curved design, iPod touch is now a mere 7.2 millimeters thin. Its engineered glass front and stainless steel back feel sleek and smooth in your hand. Turn it on, and you're instantly blown away by the brilliant Retina display. iPod touch is the perfect combination of stunning design and revolutionary technology brilliant from the outside in.
http://www.apple.com/ipodtouch/design/
I guess the antenna is around the camera? Interesting... I wonder if it gets a good signal. Definitely going to wait for reviews before grabbing one of these.