I'm quite happy with my previous iPod (mini) and my current one. I recently wholly appreciated the value in having an iPod. See, I went into a random mall here and picked up a case for my iPod. And it struck me as I was going to the checkout that, if I had any other player, I wouldn't be able to do that. I just walked randomly into a mall, and picked up a case for my MP3 player, within 5 minutes. That's something that would be extremely difficult, if not impossible, in most malls, with most other MP3 players.
I'd go for the iPod Touch. I'm getting one myself.
And I agree with Lilleput.
EDIT: Forgot my other reasons for buying an iPod:
- Great customer support (if I ever need help, or anything, I just phone Apple and it's really quick and really easy)
- Massive online music store
- Long lifespan
- Great sound quality (I disagree with what others have said here: I use Skullcandy Full Metal Jacket earbuds, and the sound is easily above par. It's not audiophile quality, but if you are an audiophile, the last thing you'll be doing is using earbuds with MP3 files).