If you can afford the iPod touch, go get it, it's completely worth it
Super slim design, terrific display, front facing VGA camera for FaceTime, rear camera for HD video recording, super fast, iOS 4.1 with App Store, iTunes Store and iBooks Store, built-in loudspeaker, gyro+accelerometer, excellent battery life
Volume control keys are a pain to use, poor quality still image capture, no FM radio, poor quality supplied earphones, loudspeaker volume not enough for FaceTime calls
An iPhone without a contract is how Steve Jobs described the iPod touch, but for us, it has always been an iPhone without the phone calls. For those of you who cannot get the iPhone, either because it is too expensive or just not available in your region, or if you already have a capable smartphone, then the iPod touch was the next best thing to have. It did almost everything that the iPhone did except for a few things. Apple has always maintained that difference between the iPhone and iPod touch, and have been selective as to how many of the former's features the latter got. With the 4th generation model, it seems they have gotten a lot more lenient.
Let's start with the design. If there is a newer version of an Apple product out there, you can be sure that it is going to be slimmer than before, regardless how how small the previous model was. The older iPod touch was 8.5mm thick; the new one is 7.2mm. Any thinner and it would have just been a glass slab. Maybe that's what the next generation iPod touch would be, just a transparent glass running iOS 5.1. But we digress.
The current iPod touch does seem like you are holding a glass panel in your hand. There is no chrome border on the new model and the glass on the display goes from edge to edge, which further enhances this illusion. The body of the new iPod touch is also widest near the front and then tapers away sharply towards the back, which is completely flat on the new model. The edge on the new touch is very thin and sharp. It really does feel like you are holding just a thin slab of glass by the edge, as your fingers don't come in contact with the tapering sides. This ultra-thin design and tapering edges do come at a high price though.
The volume control keys on the side are very difficult to use, especially when the player is held in your left hand. First of all they are too small and almost flat with the surface. Secondly, they are placed on the tapering side and are a bit hard to press. This makes them an absolute pain to use properly. You will be lucky if you are right handed as things are not so bad then. But if you are left handed then you better train your right hand to operate the player, as it is almost impossible to use the volume controls with the left thumb. The power button on the top is also not very easy to use but considering how seldom one uses it, it isn't too much of a concern.