I have one and it's what I bump from. Love it. Don't have many apps, but I can keep up with email, bump, and have hundreds of pictures with me. I have an old school flip phone that doesn't do anything fancy, so it's not redundant to a smartphone for me. I'm actually thinking about getting the new iTouch because when it's on a wireless network you can text message or FaceTime, so it must have a camer too.
I loved it so much I upgraded to an iPhone. Which I love even more. If you like smartphones, forget about the iPod Touch and just get the iPhone. Otherwise, it's the best choice of mp3 players out there.
Re: Ipod Touch . . .Yay or Nay?
My stepdaughter has one. She uses ALL.THE.TIME. They are even allowed to listen to them in 3 of her classes.
ETA: I think if you have an iPhone, then you don't need the iPod. Really the only difference is the calling capability.