I don't think 16GB is a limiting factor, in fact is there was any limiting factor that was the battery but not the storage capacity.
There is nothing you can store in 16GB that you can go through it in one battery charge.
If you can sync every night at home and recharge the battery you don't need a 100% availability of your complete music library.
In fact, from my point of view if you do a proper use of the Play Lists, you don't even need the 16GB, 8GB would be more than enough for most people.
Apple has an answer for every need, but you should set your needs.
The iPod Touch is a nice iPod (like all iPods) but it ha its target market, it is a multimedia iPod with a futuristic interface.
If you need a lot of storage at a reasonable price, the state of the technology points to a HD storage (like iPod Clasic), if you spend a lot of time in public transport and like to watch videos and podcast, go for the touch, however if you want an ipod for jogging and for a bit of every thing get yourself a nano.
Asking yourself what Apple will do in a year time, is the wrong question.
The right question is: what are your nowadays needs, because .... don't get me wrong but you have to live today, enjoy your life today because you may not be here to see what Apple will be taking out in a year time.
My iPod increase my quality of life, it makes me feel happy, it keeps me going while jogging, it helps me with my Japanese language podcasts, the touch even lets me check up my eBay auctions while out and read/answer my e-mail.
My iPod Touch cost me 365 Euros, that is 1Euro per day during a year. Is that a lot of money? Come on ! I spend more on coffee and it gives me a lot less pleasure and it does not increase my quality of life as much as an iPod does. In one year time, I can simply through it to the dustbin because it will have very well pay up for its service and I will simply buy another one.
Well, I hope it helps you out to make up your mind !
