Actually newer iPods are cheaply made. My iPod touch broke after 6 months and I babied it. That is not reliable at all. Although my iPod classic is going strong after 3.5 years. I know now that I will only buy classic's and Rockbox them. I expect that paying a premium would give you a superior product.
You might want to qualify this perhaps ......
Your Touch isn't the newer iPod. It's a 2nd Gen Touch. And you've had one break on you - so unless you can quote stats on a high failure rate of the G3/G4 iPod Touch, then this statement carries no weight: "Actually newer iPods are cheaply made. My iPod touch broke after 6 months and I babied it. That is not reliable at all."
I've had my G4 for almost 6 months - it is as good as the day I got it (knock on wood), and for the features I would definitely buy another one. I used to be anti-Apple until I actually tried the iPod Touch - but using is believing. It's a great product IMO. I'm not a big fan of iTunes - but that's mainly because I use Linux most of the time. It means I have to dual boot. I know there are other things I could be doing - but dual booting is the easiest.