Just because the iPT has a touch screen and (OMG!!) so does the iPhone, doesn't mean they need to share the same features. Remember: Apple is a busniess, and they are not willing to risk sales of a higher end product (iPhone) to sell 1% more units of a different product (iPT) to strange whiny people like you just so you will be "happier" with unnecessary features like a camera and a speaker on a ... MP3 player!
So instead it makes sense to listen to those who whined about their iPhone price, and get so worried about their feeling that instead of simply removing the GPRS/GSM component of the iPhone and sell it as an iTouch you decide to create a whole new line and expense and software support/development, etc. Considering that the iPod touch market is probably 2-5 times bigger than the iPhone market your ignorant 1% figure is tilted in the wrong direction.
Second a speaker might make the "Alarm" feature they decided to bundle with the phone work better than my decades old analogue pocketwatch's alarm, heck, even if it had the volume of a Timex I'd be happy, and that's something THEY decided to bundled with the iPod. Who needs an alarm on a portable music player as much as a speaker?
You should be grateful that Apple was willing to put on Safari and YouTube.
What? You must be drinking some serious cool-aid if you think a consumer should be grateful that a compnay was 'willing' to provide a product/service/feature. Don't let your colours show too much there bud, the logo has changed.

Should we also be grateful that Apple lets us put our music on their iPod and allows us to pay them to carry it around for them?
How many MP3 players have speakers? Not too many.
However the ones that were the main competitors during development had them, including the PSP and Archos, so it's not like Apple didn't have the ability or reason to consider this feature.
How many have cameras?? I can count them on one hand.
Well then obviously you don't get out much, because there's alot of them, including the PSP with its phone attachment.
Buy an iPhone, genius.
iPhone is more expensive Genius, and why should someone buy an iPhone simply to get features they could've easily added to the iPod touch? the better answer is buy and Archos or something else.
I don't agree with the OP's style, but his attacker/detractors seem to bath themselves in the reality distortion field and pretend like any criticism is unwarranted and we're just to greedy/picky.
I like my iPod touch, but had it not been a gift like the OP's I would've returned it an bought something else with my money, but with a few tweaks this could've been a great product, not just a good one, and considering they had the competition and their own previous products to draw off of for inspiration it's pretty surprising.