Really?
Mine has Safari, Mail, youTube, iChat client, iCal, Contacts, Notes, Maps, pdf Viewer, eBook reader, Clock, Calculator, 4 or 5 games, plus all the iPod features. There might be more I can't think of right now off the top of my head.
The Touch works fine as a pda. Sure you have to hack it now (which takes < 10 minutes to do) due to Apple's poor decision making, but even they have admitted they were wrong (hence the official sdk in February).
Still missing word, excel and ppt applications and these will not likely make the SDK anytime soon after its release. I really WANT to replace my smartphone with an iPod touch (actually I want an iPhone...stupid AT&T exclusivity), but my job requires that I have word and excel access on the fly.