Pros - Great interface, good battery life, wi-fi + blue-tooth, adjustable EQ through app add-on!, good SQ (with app eq)
Cons - No built in adjuatable EQ, tied to iTunes
Was given this through a reward scheme - and after using a Cowon iAudio7 as my main portable source - I was really interested to see how it performed. I'm using Shure SE420 IEM's.
After converting my FLAC collection to ALAC - I loaded it up via iTunes, and then ran it through it's paces. First impressions - really easy to use (intuitive), fun to play with, but definitely did not sound as good as my Cowon. It just wasn't as lively or warm. Disclaimer though - I do use a touch of EQ and also BBE on the Cowon. Had a look at the built in Touch EQ presets - but the options were terrible.
After playing with it for a couple of days - I'd almost decided to sell it and buy a J3 instead. I'm really glad I waited!
After reading a thread on head-fi, I found out about a wonderful add-on app called "Equalizer" (thank you Achmedisdead - owe you big-big). Installed it - adjusted a few settings - and what a difference! My music sounds fantastic (to me) - and I now have complete manual EQ control. It now sounds as good as the Cowon to me + I have a much nicer interface (than the iAudio7) + the bonus of access to apps, wi-fi etc.
I also used the bluetooth to pair the Touch to my car stereo. It sounds really, really good - and this with no EQ at all. So my next trial will be to get a LOD, and pair this with an E7. I have high hopes for even more improvement.
I've never really been an Apple fan - but can honestly say that with the Equalizer application, the Touch turns into a really great player. I would recommend it to others - but definitely get the Equalizer app - it makes all the difference.