After watching the iPhone 5 keynote, I was really shocked and happy at all the upgrades the touch got.
However even with the improvements, I'm still happy with my 4G touch. Using the keynote comparison:
4 Inch screen vs 3.5: Personally I'd rather have it at 3.5 inches as that is not too short or too long for me. Also since I put it in my pocket, the longer a device is, higher chance the screen might crack in my pocket while sitting down.
A5 vs A4: For me the A4 is fine. Obviously 2-3 years down the road some apps will run slow or not be supported but I'm fine with it. What I can currently do with it, is enough for me.
Camera: 5g is better but my pics look ok. Certainly not great but not horrible either. Low light makes it awful but I don't take pics in the pitch-dark.
Video: 1080p is better but 720p suits me just fine.
Wireless: 5g upgraded to 802.11 dual-band n but 4g already supports wireless b/g/n and is fast.
Lighting: Now this annoys me. The new adaptor/wall charger needed to use 5g is a pain compared to 4g.
Siri: While a nice feature, the novelty wears off quick. Voice control gets the job done for me but I don't use it.
iOS 6 vs 5.1.1: Some may like iOS6 but for me staying on iOS5.1.1 is currently better. More free RAM available on 4g is a major reason.
I believe those with 3rd Gen and lower- the 5G is a great upgrade. But those with 4G should stay with what they have unless one of the points above is absolutely important to you. Or unless you upgraded 4G to iOS6 which makes the device not so smooth.
