I disagree with experience. The iPod Touch is a fantastic device (unless someone already has a solid smartphone) and would make a great gift. The hardware will last for years, though the software will inevitably get outdated after a while - but for what computing device is that not true?
This is a perfect example in my case. I know dragons will come forth and test my flame suit, but as a smartphone goes, I sold my battery eating Android and I'm perfectly content with my older BlackBerry. Not only does it do just about everything I expect from a smartphone.
I can go a full day of heavy use with using GPS navigation and Google Maps, Internet browsing, email second to none, Facebook, Twitter, YouTube, and it's a decent music player as well.
The best part is the battery life despite heavy application use, I don't need to scramble for a way to charge it back up before noon.
At the end of the day, my battery still has 3/4th of a charge in it. A neat bonus is being able to use my phone as a Bluetooth modem with my MacBook Pro.
Gaming naturally sucks on a BlackBerry phone and my 64GB iPod Touch is perfect for just that. I have the current model in black with a shell covering the back to keep away the scratches and many people mistake it as an iPhone. I just tell them "yeah" and the nosy types move on...