I've owned the iPad 2, and 3, and every generation of the iPod Touch. I always ended up selling or returning the iPad, and keeping the iPod Touch.
If I am home, i am using my iMac for web browsing, and media, and my xbox for gaming and netflix.
If I am away from home, or traveling, I prefer using my iPod Touch. The iPod Touch is always with me, always in my pocket, and its easier to hold in my hands than a tablet.
I definitely dont bust out and use a tablet while I am waiting in line somewhere, or use when I am sitting on the toilet. The touch is just more suitable to use in small spurts.
And one of the main things I use it for is to listen to podcasts and music when I am working out on the gym, cycling, or going for walks. Definitely can't do that with the iPad.