Unamped, the D2 hands down, better quality headphone out and its "swiss army knife" format support pùt it ahead,
Amped, the Touch might be the better choice since you can LOD the touch, the D2 has no clean line out, so if you´re willing to live with itunes and the limited format support in exchange for good sound quality, the LOD + a good amp is a good way to go,
the touch is a nice becuase of all the extra apps, so its basicly a PDA/MID with decent music playback capability,
but if you dont need the programs and arent interested in using it for anything else then listening to music, the D2 is a better choice, i bought a 32GB SDHC for mine, and a good card reader (its a must, the D2 usb port is limited to 5MB/Sec)
the D2 isnt the best sounding unamped player out there, the S9 beats it hands down, so does the Sony X1000, but the standart cabling, the MacGyver style format support and the ease of use and expansion makes it one of my personal favorites, and even though i own a S9, i did not sell my D2, and i take it with me once in a while, and if i travel, its the player i take, its robust, the cable is easy to replace if it gets lost, and SD cards are bog standart to replace is something happens to the card on it,