I have the 32GB 3rd-gen touch and while I'm happy to have the ability to purchase the upgrade to iPhone OS 4, I still think the 8GB would have been good enough since I'm only using about 3.5GB. I really was just wanting a mobile browser, calendar, email, Instapaper, and Kindle device.
Don't feel bad, 8GB "3rd-gen" owners. You still have a great mini computer.