New
#11
As others have already said, the iPod Touch is a much more advanced device more like the iPhone than a typical iPod. iPod Touch gives you the benefit of apps, Internet, games, etc on a level the Nano doesn't.
All that said, you should know that the current 8GB Touch is NOT the 3rd-gen, it's the 2nd-gen. It has much shorter battery life and a much slower processor than the 32GB and 64GB models, which are 3rd-gen.