With any kind of electronic device, there is always some sensitive electronics, such as the motherboard, or other type of hardware that will hold all of the components of the device together. Just like in your computer, there is a miniscule motherboard in the iPod touch, it holds the chipset, the processing unit, and also the connections for your headphone port, your lcd ribbon connection, and the connection for the memory device. Dropping the iPod touch no matter from what distance, could crack the screen, or break a connection in the iPod's innards. The iPod touches are quite durable, and can take a fall, but over time dropping the device could evenually loosen a connection, or cause a malfunction.