The smaller size of the iTouch makes it much easier for my thumbs to reach over to the needed keys compared to the N800. But my iTouch friend said he like the N800's as much as his iTouch's.

AFAIC, the iPod families media access and interface are still king. FWIW, I still prefer physical thumb and vol. wheels (like on my Insignia MP4 player) over touchscreens - esp. when working or on the go.

IPods supposedly got a new release, or 3rd party app, that will allow access to other (presumably Flash based) video sites.

Apple has the rep of always putting out devices w/ higher prices and too little memory onboard. It's the price of innovation, I suppose. But having enough solid-state memory will be a moot point by '09 when the new terabyte tech is marketed.