You're 3G....
But seriously, it's a faster mobile wireless protocol. Depending on how it's implemented it can be anywhere for marginally quicker than Edge or up to 7.2Mbps as it is in a bunch of places down here.
Just means away-from-WiFi browsing is much faster with better bandwidth. Good for the iPhone but doesn't mean much for the iPod touch. In Asia and Europe 3G is basically everywhere - most of Asia is 3G only with some 4G networks popping up. Telstra here has a 3.5G network that covers 95% of our population (not bad for a country the size of the US - very low population though so we're really spread out) but because they are in a quasi-monopolistic position amongst the local telcos as a symptom of being formerly government owned, browsing the network is ridiculously expensive.