i have played around with the touch and even though i have an 800, i still think that the touch might be better for me mainly because i don't know anything about linux ... i mean zero ...so owning an 800 means learning at least _some_ linux
the 800 is clearly the better machine in terms of what it can do as time goes on and it gets more apps and a bigger user base .. it has a much bigger upside whereas the touch will do pretty much what apple says it will do