I was in the same situation like you 2 weeks ago.I browsed the internet to get some information about it and finally decided to buy it a week ago.
I bought the iPod touch 8GB for about 220 € and so far I don't reject it at all.
I already had an iPod Nano and therefore the main reason why I considered to buy a touch was the internet function.It's really easy to connect your iPod to the internet.Surfing with Apple's browser "Safari" on the iPod touch is just like surfing with the computer except that you can't watch videos due to the missing flash player.The only videos you are able to watch are the videos of youtube.
Despite the internet there are a large number of interesting games and apps available on iTunes that are either for free or to buy.Free apps and games such as "Google Earth" or "IM+Lite"(which allows you to use MSN,ICQ etc) are pretty usefull.Playing games on it is fun aswell.
You're able to listen to your music without headphones through speakers who aren't very loud but acceptable.
The display of the iPod touch is wonderful and not scratch-prone at all(
http://www.youtube.com/watch?v=kzbxpSwDetk). You'll leave your finger-prints on it but that's not tragical because you'll have a cleaning sheet.The back of the iPod looks great and is like a mirror but it's also pretty sensitive.I'd recommend to buy a case or something like that to protect your iPod.
Some people with sausage-fingers have trouble to handle the keyboard because "the letters are too close together" but honestly after some practice it's not
that hard.
I think it depends on what you want.Do you mainly want to listen to music?
If you have questions,feel free to ask them.