it all depends what you are looking for in a device.
I want a device which lets me browse the web, including having the ability to save files for later use. I don't think the Ipod touch can do this.
Furthermore, I like the ability to write stuff on the go, without having to haul a laptop with me.
And there is the email, of course.
For me, the NIT functions as a small laptop; versitalility is the key.
And yes; is also plays music and videos.