There's a little misinformation going around here regarding location services and iPod touches so I figured I'd clear some stuff up.
While the iPod touch does not have a GPS, if you load directions to a location when you're on wifi, then travel with the iPod not connected to wifi (like in a car or walking down the road), so long as there are wifi networks nearby (you don't have to connect to any of them), location services will be able to locate you on the map that you have pre-loaded. I've used this on my 4th gen iPod touch while driving, as well as my 6th gen iPod touch, and it works pretty well, though of course in places where there are few wifi networks or if you're moving too fast (for instance, on the freeway), it doesn't do so well, but it's definitely a nice alternative to using nothing. 🙂
Note that because location services works this way, taking a photo or video using the camera will also record its location taken when you later connect to wifi, using the location data for the photo. 🙂