I'm in the same boat. The UK Apple Store has refurbs of all three touch models, which is a nice discount.
But the fact that all three are available for refurbs, plus O2 stores in the UK were selling the touch for half-price a couple of weeks ago, indicates that Apple and retailers are trying to clear stock.
Which suggests an update coming out of WWDC next month (paired with a new iPhone?)... but then a refurb is as good as new, and it's cheaper...