I have both!

The Touch is sexy, great for music and video. The size is a bonus. Safari, the Touch's web browser is good but lacks Adobe Flash support. A few neagtive points are, any video must be re-coded to a format the Touch uses and there is no loud speaker. You can only use WI-FI to connect to the WWW.

The N800 is great for all things internet related, the resolution of the screen is a bonus when looking at web pages. It's interface is not a slick as the Touch but it does what is needed!

Try to have a play with both before you buy!