I have the S9 as my portable, which is pretty much the same as the J3 (with no memory slot). I have to say, I'm pretty happy with it. Can't comment on sound quality or comparisons because I've never heard the 4th gen iPod touch.
But from my experiences of having a iPhone 3GS (company gave it to me) + S9, I pretty much used the S9 all the time just because I don't play games/use apps. As many have mentioned previously, the EQ adjustments you can make on the Cowon players are very good and the drop and drag library is simply the best for people like me.
But if you find apps useful and play games often, I'd go for the iPod touch just purely on your needs.
Good luck~













Also, even though the Cowon equalizer shows 5 bars, it actually has much more adjustibility tthan that. You can change a different frequency on each bar and change the range that your adjustments affect. You can go surgical.The great thing about the BBE enhancements is that you can boost the MachBass setting like crazy and give you some major bass headaches but you won't be hearing much distortion considering the amount of bass you increase. Also,