^^^
Actually, ifixit sells the iPhone display assembly at $200. Plus the labour and the shipping, $270 isn't too bad. $10 for labour? Here it's 80 bucks a hour if you wanna get something fixed in Bestbuy of Futureshop. 20 minutes tops? Opening up iPod touch isn't a easy feat, it would take at least a hour to open up the case, disconnect everything, switch out the display, reconnect everything then reassemble the case and whatnots. Of course Apple gets the parts cheaper, but if you add in everything, the high price isn't that surprising. I doubt you can do it yourself for under $200. iPod touch is still a pretty new products, so the parts would be hard to find and expensive.
Next time, get a case 😛.