Every kid is different and must be handled in a way that is best for him. I know the decision has already been made, and I'm glad to hear the kid had a great birthday. But I thought I'd chime in a bit on this.
Situation 1:
Me at nine, I already owned a Sony Walkman and about 30 tapes. (Mostly Disney stuff and Debbie Gibson, Michael Jackson and New Kids on The Block) I had developed musical interests that continue today and I have owned several tech things since the age of 9, including Game Boys, kid-oriented PDAs and my first Palm Pilot at age 14. (I went to a college prep high school, it came in handy) To this day I am quite the gadget geek and I take care of all of my gadgets. I was responsible enough to know that if I broke the Walkman, I couldn't listen to my music anymore because I wasn't getting a new one. It came in handy on long car trips.
My middle sister at age 9, owned a boombox and tons of tapes herself, brought it everywhere she could fit it. It ended up rather banged up and scratched, but it still worked. She didn't take as good care of it as I did of my walkman, but she took better care of her stuff than our youngest sister did.
Youngest sister to this day is a walking accident waiting to happen. She had a CD player at age 9, but ended up breaking it and the one after, not to mentioned scratched disks left and right.
If given the chance to own an ipod touch at those ages, I would have taken great care of it, my middle sister probably would have too though it might have ended dinged up, and my youngest sister would have broken it in a week. Know your kids, and then decide.
Situation 2:
My manager's now 10 year old son wanted an iphone. I told her I thought that was too young for an expensive cell phone that will end up costing alot of money on top of her own iphone. (I don't think a 9 year old needs a cell phone at all) HOWEVER, I suggested the ipod touch. She agreed and that's what he got, given that he had worked all summer mowing lawns to try and save up for an iphone and had done remarkably well in school that fall. She felt he deserved it for the hard work, but explained to him why he wasn't getting an iphone. (too expensive each month) He is fine with the itouch and loves it, especially after I showed him how to load Skype on it and make calls. (Which his mom had no problem paying $25 a year for if it curbs his iphone thing a bit)
Situation 3:
A coworker's 8 year old son was diagnosed with leukemia a few months ago. We all took up a collection to get him a gift. We got him an ipod touch, since the hospital he's in has WiFi and he can use it to check his email and keep up with his friends, watch movies, surf the net and listen to music. Best thing we could have given him short of a netbook, which was the other option, but his parents thought 7 was too young for a full computer. He has not been bored too much lying in the hospital bed. (And has gotten fond of pranking his father by imitating his dad's iphone ringtones, making the dad think his phone was ringing. Dad tried to answer the itouch once, gave kid a good laugh)
So you see, there are times, depending on the kid and situation, where the gadget is a perfectly acceptable gift. My fiance's teenage nephews have no business owning any gadget of any kind, because they break ipods, PSPs, and Nintendo DS's like you wouldn't believe, but their mom keeps buying them for them.
---Ashley