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For the particular field of PMP/MP3 player, there really is nothing currently out that directly competes with the iPod touch, at least for now. You've got the Samsung YP-MB2, which effectively is a Galaxy S without the phone, much like the iPT is a phoneless iPhone for the most part.

Sony also apparently has some Android stuff in the pipeline. However as I've discovered with the Motorola Droid, Android has a ways to go before it's as consistent as iOS, and I personally wouldn't ditch an iPT for an Android device. In fact, my wife just ditched her Galaxy S in favor of an iPT4+feature phone combo (she's unwilling to leave T-Mo for AT&T for an iPhone). Copy and paste sucks, FB app sucks, and the Market just lacks overall in comparison to the App Store for iOS.

As Mosx said, as long as the .7MP camera takes good .7MP photos for twitter and FB, etc., who cares? Anyone looking to take important pictures should be using a real camera anyway.

I have yet to see any camera phone come close to what even a basic decent digital camera can take.
 
built-in mic on iPod touch

Ask and you shall hear.
Voice Control knows the music in your iPod touch. Want to hear something specific? All you have to do is ask. For instance, say “Play artist Bob Dylan,” and iPod touch does just that. Ask what song is playing and hear iPod touch answer. Tell it to play your favorite album, artist, or playlist. Speak simple commands such as “shuffle,” “next song,” and “pause.” Even have iPod touch play more songs like the one you’re listening to.

voice_control_hero20100901.jpg


Record memos (or any audio).
You might have a good memory. But sometimes, it’s nice to have a backup. Record notes from a lecture, a reminder of when tickets go on sale, or a bet between you and a friend. With Voice Memos, you can record any audio you want using the built-in mic on iPod touch or an external mic. Voice Memos will even record while you use your iPod touch to do things such as check email or surf the web.

voicememos_record_20100901.jpg
 
I want it to have 256 gb storage, a 30 megapixel camera with 40x optical zoom, free unlimited 3g+4g, and a bunch of cool sci-fi augmented reality apps.
 
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