Here's a copy of one of my other posts on a similar topic. COPY... PASTE!
First off, I bought an iPod touch recently, after months of deliberation and testing. I'm going to be as honest as I can here, and point out my reasons for preferring this product as a general user, amateur audio lover, and gadget nut. My needs are only my own, so my opinions should be taken only as such. Disclaimer aside, here are my bulleted reasons for choosing the touch, and why I, personally, see it as a peerless device.
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It's not a phone. While there are gobs of do-it-all devices in the cell phone market (of wildly varying qualities), all of them must be used with a monthly fee. The touch delivers a similar experience without this limitation.
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There are no PDAs to equal its audio/video/storage usability and options. If there's something I've missed, it's not going to be in the same price range, nor will it have similar storage space. Its integration with iTunes, whether you appreciate the program or not, is also a strong addition.
As a side note, I'd like to mention that I also find the touch's sound quality to be great with my PortaPros. I realize that this is not the common opinion, but, with proper MP3Gain-ing and a good equalization setting, my touch can deliver a surprisingly rich sound that is currently my favorite among portable devices. I have not tested it with IEMs, however, so I am unaware of any background noise they would reveal (I have found no such noise with my PortaPros.)
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It has an extremely capable internet browser. While lacking Flash abilities, and certainly choking at times on heavy sites such as Gamespot.com, it's a rare occurrence that I come across a web page that I am not capable of enjoying at near desktop levels.
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Jailbreaking, and the upcoming SDK from Apple, opens this device up in ways that no other DAP can offer, and puts it in a position to directly rival full-fledged PDAs. I have my 1.1.2 touch jailbroken, and am currently enjoying the added benefits of all missing iPhone applications (sans stocks, as I chose not to install it) and various user-created programs. It's amazing what the modding community has done in such a short time. As they gain more traction, the touch and iPhone are both updated through Apple, and the SDK is released to the public, the possibilities will continue to open up.
I also reeeaaally like its e-mail application.
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It just works. Yeah, I know; the old Apple claim. However, over the course of time I've tried trying various players from many companies, and this point has become paramount in my (never-ending) quest for the perfect player. My Cowon D2 had AVI video speed errors that were unacceptably difficult to fix, the Zune had inconsistencies with regards to its wireless syncing while docked, my old Creative players had failing headphone jacks, etc.. Make no mistake: I do NOT claim that the touch is without glitches - it certainly has its share. However, the current leader in consistent hardware and software quality is, in my experience, Apple, and this fact alone keeps iPod in a top position during each of my DAP upgrade cycles.
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I like well-implemented touch controls. I looooove touch controls! Mind you, I'm not just talking about screens; the new Zune's touch pad is currently my favorite of the DAP input mechanisms. Both the Zunes and the touch (I don't like the click wheel too much; not accurate enough) get touch control right in my book, and they're stronger devices for doing it so well. Though not quite as accurate, the Cowon D2 did a fine job, as well.
There are likely other reasons that I'm not remembering, but these are some of the most important. The touch delivered almost all of the features that I've been looking and waiting for for years in the DAP/PDA worlds. The fact that Apple did it all so well, in one slim device, with such a clean and elegant interface has honestly blown me away. I really don't care for Apple's products on the whole, but the touch has delivered something so close to my ideal device that its existence amazes me, particularly at our current state of technology. The touch's strength doesn't so much lie in its individual technical capabilities, but the fact that it brought them all together into a finely-tuned, well-designed, and cohesive whole. There's just no other device that can also boast each of the touch's separate selling points as its own.