Ok. A lot of you people are whining about whiners.
There are obviously those of us that counted on more capacity.
And here's a couple more reasons why...
The MUSIC capacity argument is moot. Obviously, if this were just about music capacity then all of us would be rushing off to get the new classic. And there will be a group of people that do that, but these will be music collection-centric people. So all you people saying that you have everything you need with your shuffle/mini/nano, that's great, but this isn't about you.
Which brings me to my second point. I really don't think that the ipod touch is directed at the general shuffle/mini/nano crowd (if it was directed at them then that was a serious misdirect). This croud (in general) has a lower annual income, aren't huge music collectors, and wouldn't be in the market for a $400 ipod anyway. Or they have one of those devices because it was small, for the gym, running etc.. I would say that the people that would be the most likely to buy this, are the same people that currently own 40gb, 60gb, and 80gb ipods, and are used to spending this kind of money (and are often ok with spending more) for a 'toy'.
Third. Think back to when the ipod video came out. Shortly after, the widescreen ipod rumors came (think years and years back). We were all enamored by the idea. 'Sure Ipod video looks ok, but think about how this would look on a widescreen ipod!'. This (widescreen video) was the big thing that we were waiting for. Granted, wifi and touch are nice additions, but the idea of widescreen video on an ipod really ignited all of us (macrumors archives). The PSP came out, and we didn't get that for obvious reasons. We want our movies with us. So we loaded them onto our ipod video, and man did they load up fast. With movies around 600mb (or so) each, that leaves less and less room for music (and of course, we like music too). Ok, so movies take up a bunch of room. A widescreen device should have the ability to hold what it plays best (yeah, not coverflow).
Wifi, works here and there. Music only, buy a classic. Touch screen, all fine and fun. But it's widescreen, for VIDEO.
Of course, I would like music in there too, as Apple has gotten us plenty accustomed to having both, at large capacities.
I wanted the ipod that we've all been waiting for. That's all. For now.
p.s. - This post isn't directed at you people that don't live in USA, I know you can't get the iphone yet, so this is a substitute.