I don't think that the iPod Classic and iPod touch are designed to cater to the same market. The Classic is for the people who still like the click wheel, and have a massive library of music. The iPod touch is seemingly designed to cater to the market that wants a multifuction device, which is seen in the fact that it has Safari and Youtube.
Yeah, stupid me. Of course iPods aren't meant to be used for music and videos...I strongly suggest people stop treating iPod touch as a traditional iPod, A.K.A. a music/video player.