Writing this from my new iTouch. Really nice device as one would expect from Apple.
The only negative I have to say about it so far is that it only supports one running application at a time. To me that is just about unacceptable. For instance if I start an IM application and then switch over to check email, then I get signed out of IM. So it’s worthless as a real OS.
I predict that we will see iTouch’s in larger screen sizes. Especially if they make the OS multitasking, this device would make a fantastic tablet “pc”.