And if I were buying one for my 5-year-old (no judging on getting him electronics, please - I'm looking at this vs. a DS vs. a Leapster Explorer - and I'm thinking this might be the most versatile and I might get my phone back...), would an earlier generation with fewer GBs be ok?
Re: Please explain the "generations" of iPod touches to me
Fewer GB is fine since I assume your 5 year old wont have thousands of songs or keep dozens of movies on it. The newer Touch models have cameras and external speakers, but the older ones do not.
Sure. You might even want to check on apple.com to see if they have any refurbished ones that you can buy for cheaper, as well.