I've had an iPod Touch for a little while now, and have found it to do pretty much everything that I had hoped for it. It didn't take me very long before I jailbroke it, and the fact of the matter is, you'll never maximize the potential of it until you do. Apple's core set of applications leave the device wanting, but jailbreaking it brings out all the things that peoplle want in a mobile device, especially one as innovative as this.
I bought the device primarily to surf the net. It does It fantastically with the caveats of a missing Flash plugin. That glaring mistake aside, the iPhone/iPod Touch brings new meaning to the pairing of mobile devices and the Internet. Surprisingly though, I find myself reading ebooks on this little thing. I first started out with 1984 and Brave New World, and quickly moved to more contemporary science fiction like Star Wars.
So, with the honeymoon over, what do I not like? Well, I don't care for the limited set of gestures that it supports. This hampers anything with dragable support on a web page, as well as limiting things like copy and paste. Of all the things to include in a device, you would think that's one of the basic to be included.
If I had had the opportunity to purchase it again, would I? Absolutely! The thing is such a joy to use, and I feel like I can multitask web, email, etc much better than before. Updates are coming in June, so I look forward to extending its functionality even further.