My wife gave me an 8 GB touch for Christmas. In general I love it, but as with any toy it has it's drawbacks.
1) No "convert audio files to 128 kbps AAC for transfer" option (Ironically I have a shuffle for running, and don't use this feature because it's less than 1/4 full. But since our mini is hardwired to the stereo (as was it's predecessor) most of our collection is either 256 or lossless, so that function would come in really handy for the touch which I'm now using to listen to music at work)
2) No Volume, last, next controls from cover flow (landscape) view. Better yet add physical controls on each side of the button for the main menu.
3) No Mail
4) Safari way to slow to be useful (I've only tried connection via the shared airport from our mini (wired to cable modem) which isn't exactly fast, but still it won't even pull up the NY Times home page with out locking up )
5) If the touch can sync all of your other data by deleting some of your pictures it will delete all of them without asking first (even if the extra data your trying to add is more pictures). It will inform you that it did this afterwards.
6) When plugged in I get the day glow green battery instead of my wallpaper when I turn the screen back on/ wake it up. Come on, I know it's plugged in there's a huge friggin' white cord hanging out of it, and even if it wasn't connected for some reason I'd still rather see my wallpaper. That's why I took the time to set it.