Really don't understand the complaints on the Touch regarding pricing, £249 for a 32Gb iPod Touch compares to £599 for a 32Gb iPhone 5. That's a pretty damn good deal in my book. Not convinced? Well thankfully Apple sell their whole iPhone range unlocked in the UK so we can get comparison prices easily.
The cheapest iPhone is the 4 which goes for £319 but that's only got 8Gb of storage. Same camera, slower SoC, smaller screen... if the phone component isn't a must have it's a no-brainer.
How about the 4S? 16Gb goes for £449 unsubsidised and unlocked, £200 more than the iPod Touch. Better camera, same SoC, half the memory, smaller screen... again the iPod Touch is looking like a pretty good deal.
Would it be better if the lower end unit was a 5th gen? Of course, but then it probably wouldn't be £169 either.
That said the Verge seem to have rather phoned that review in. It's fair enough to comment on the lack of GPS but to claim it's baffling that it's not there is silly. From a technical viewpoint the GPS is, I believe, integrated into the wireless modem these days, hence it's omission. Odd that a tech web site decided to go the "there's no obvious reason for removing it" path when there clearly is! Then again it's The Verge and their coverage has nosedived recently IMO.