I just bought an iPod Touch 4th Generation to replace my third generation which I replaced my second generation with. I thought the iPod Touch was amazing even when the 2nd Gen was what was out, but now they have an iPod equivalent to the iPhone 4. This new iPod Touch has the "Retina" display, a 2 megapixel front facing camera, a 5 megapixel rear facing camera (720p HD video recording too), a speaker and a microphone. The 32 GB cost me $299. I must say that after seeing the screen, I never want to look at any other mobile device. The clarity is just mind blowing. I loaded up SevenForums in Safari on it, and I could read EVERYTHING without zooming in at all.
If anyone is considering an upgrade from an older iOS device, this is by far worth it. The new iPod Touch has 512 MB of RAM, and an 800 MHz Apple A4 processor (same as iPad) which are the same as the iPhone 4. I will be getting a carbon fiber case for it soon. The competition stands no chance. The new generation iPod Touch annihilates everything out there even by just comparing specs and prices.
For anyone curious, I did not type this out on my iPod. This post would have been much shorter if I had. Also would have taken forever XD.