Bought one of these about a month ago and I take it with me everywhere!
I had lost my iPod shuffle while on holiday and was just going to replace it with another shuffle when I spotted the iPod Touch. Immediately I tried talking my self out of purchasing one because it didn't exactly fit into my budget, but seeing as my boyfriend had just spent £200 on a radio controlled petrol fueled car, I figured I could treat myself too!
My favourite feature on it by far is the wireless access. I've set my two email accounts up to it and I love that I can quickly sign in from anywhere that has wireless internet. It's pretty convenient for when you're settling into bed at night and realise you forgot to respond to that email you meant to during the day!
The touch screen is great, I never find myself having to tap too firmly or more than once to navigate my way around. The keyboard can take some getting used to, but it's nice that it has an auto spell check that fixes words for you as soon as you finished typing them. The image quality is incredible, and I love that I can store photo's on it as well.
An absolute MUST is a protective cover of some kind. And buy it at the same time you purchase the Touch because you won't make it through a whole day without scratching it somewhere without one.
The only thing I've been slightly disappointed in, is the battery life. I haven't timed it yet, but I have to charge it much, much more often than I ever had to with my shuffle. That thing would last for weeks without having to be recharged! The Touch can barely go a few hours of use before it's worn out. As long as you take the charging cord with you and have access to a computer to plug it in for a while, it's not too bad.
Other than that I absolutely love it and would highly recommend it!