I love it.
The touchscreen is super responsive. It multi-touch, its intuitive, its perfect. I am actually having difficulty using other touchscreen devices. More with the screen - it is very vibrant. At 320 x 480 px, I expect nothing less. It is perfect for games and video.
Music playing is also easy to learn unlike with other Ipods. (admit it, you had difficulty using your first Ipod ^.^) The touchscreen made it all easier. Music quality will of course depend on your music files and the all important earphones. Speaking of, I am going to put the earphones in the Pro's section. Its not the best I know. But considering its stock earphones, I love it. Lets just say that i dont plan to get Senheisers or Philips earphones just yet. I also like the fact that it doesn't tangle too much. Unlike the cellphone earphones I was using with my phones.
Free Apps from the AppStore are golden. Most of the really good ones are to be bought. (of course nothing is free) My worst pain here is the Pocketguitar application. Its $0.99 on the AppStore and I don't have a credit card and I am not planning to get one. I guess I'll just wait for it to be free. But again the free Apps more than makes up for it with a huge selection of applications to choose from.
The WiFi is also something to take note of. Its super fast for a mobile device. (I had a P1i to compare it with) Ipod's internet is super fast and supports multi-tab browsing in Safari. One downside is when I try to update the Apps via Wifi, it sometimes get stuck (it happens when I'm updating like 13 apps at a time haha.)
Charging time is also sweet. Max I have charged is three hours. Syncing takes a while to get used to. You have to familiarize yourself with iTunes first, but once you get used to it, its a breeze.
The battery life sucks. Seriously. This is a major turn-off for any gadget. It lasts only a few hours with Wifi, gaming or video. This is something I am really uncomfortable with. Max you can get with these activities is three hours.
I am also having a hard time creating a video play list. I just don't know how and why but i can't create video play lists.
Due to the tsunami of radio applications out there, its virtually impossible for Apple to include a good-old FM Tuner on the iPod. I don't know, sometimes I just want the option of being able to listen to good-old FM radio without having to connect to a WiFi spot.
Those are my major disappointments.
A few more details about the Ipod touch. I am not going to Jailbreak my Ipod. No matter how "cool" some people think it is. I just wont. I don't see any reason why people would still get cracked Apps for their Ipods when they usually cost not more than a few dollars. If you like it, buy it. There's a difference in being practical and just being a plain cheapskate.