If it were advertised simply as a media player, then yes - it is probably one of the best. But there are a lot of things that are...half-assed at best. Example from this morning. I had to wake up early for my new job, so I set two alarm clocks - my cell phone and the iPod. The day before I had turned down the volume on the iPod, so guess what happens - I get a silent alarm in the morning. The only thing that happened was that the screen turned on and it read "Alarm". No sound!
I've had about five mobile phones in the past and their alarm worked perfectly, regardless of what sound level I had set for ringing. It's such a small thing, and I bet it can be fixed with a tiny piece of code, yet Apple have not fixed it for years!
My last media player - Creative Zen, was a very basic device with very few features. But that's how it was advertised - it's just an Mp3 player, take it or leave it. With the Touch, Apple advertised it as so much more than a media player...and it just isn't.
So again - it's not the problem of the device as a device, it is perfect for what it does. It is Apple's sneaky, unscrupulous, deceptive marketing strategy. (Yes, I admit - I fell in their trap)