Well I really liked it, the web browser is better than my N95 and my PSP. Multitouch zooming and being able to flick through on coverflow is really cool. Think I might be asking for one for christmas.

The storage isn't much of an issue. I've been getting by with 2GB in my N95 and i've always liked the integration with iTunes, so keeping it refreshed with new music, videos and podcasts is a breeze. Also I preferred the 5th Gen's styling to the new Classic so I think the Touch is a no brainer.