I find the iPod Touch far too sensitive to touches due to capacitive. While resistive can seem slightly insensitive overall I find that preferable to it picking up me holding the device as a touch, which happens to me all the time on the iPod.

That is doubly so when you use a stylus. Yes you can use a stylus on capacitive but its just as likely to pickup your hand resting on the screen while you try to get a comfortable position to hold the device for using a stylus. Resistive means your fingers can slightly rest on the screen allowing you to hold it easier on one hand while drawing/tapping with the stylus in the other.

Also, grease from your fingers WILL disrupt capacitive sooner or later. I find myself having to wipe the screen too often on the iPod because its stopped responding yet it doesn't look dirty. With resistive it doesn't matter how dirty it is or your hand is, you can still operate it. Not to mention the old "when wearing gloves" argument or "using any implement that exerts pressure".