I personally don't have a itouch, I have an iphone, and love it! Especially now that at&t is opening up more 3g coverage! Its my understanding the itouch is pretty much an iphone without the calling/texting capabilities. The apps you can get for them are hit and miss, theres some good ones, and theres some useless ones too, but thats to be expected. Using the Ipod part of it is nice and easy too, especially with Itunes. The internet capabilities are nice and helpfull unless you plan on actually surfing the internet with it, it gets kinda tedious for that. But using it for checking your e-mail, weather, facebook, espn (good app) its very usefull.
Overall I give the apple/mac products a 4.5 out of 5! I don't think you'd be disappointed, although if your thinking about getting an itouch you might as well wait for your cell phone contract to be done and just renew with an iphone