The "Touch" I feel while it is very sexy (like the iPhone) competes almost directly with the iPhone.
It's nice to see them moving into WiFi (Safari, the Starbucks stuff, etc) but I feel they're just putting out too many devices with no clear winner.
Let's not mention that in 8GB and 16GB it's nothing to drool over size wise. What boggles the mind them most is the iPod Classic. It has 80GB and 120GB of mega storage for a video wet dream, but it's on that shit-tastic 2 inch screen. Sort of defeats the purpose.
All in all, I'm impressed by the new Nano, the improvements to the iPhone/Touch(Wireless Song downloading), and the obvious push Multi touch is getting as an input technology.