You could speed it up, increase battery life, and try new things.
iPod touch 2G 8GB IS NOT compatible with iOS5.
It only goes up to 4.2.1 if my memory is correct.
I have a 32 GB model. Would that make any difference and allow me to do more things to it?
yes definetly jailbreak, theres a lot of awesome things you can do once you jailbreak
check out my new blog: ipodtouchjailbreakinginfo.blogspot.com