Which iPod touch were you going get? I got my fiancee one for Christmas. A iPod touch 4th generation, 8 GB ($200 from Amazon around Black Friday). It works extremely wonderful for her. I've succeeded in getting her interested in games (puzzle at the moment). She loves Cut the Rope, and there's this other one that involves fitting tetris like block pieces into pre-determined shapes. She also tries a few non-puzzle games (but she's a new gamer). I've downloaded some of the more interesting ones like the engine demo to see how it was like.

Basically: it works well, games are fun to play. If you have any specific questions I can answer them for you.

For me I've had problems getting the touch screen to accurately respond to my finger touches (nothing new, I seem to have that problem in general). So it makes gaming a little difficult for me personally. But I'm sure I could adapt to it if I kept trying. She had the same issue at first but now she's a natural at it. I still have issues (maybe it's something with the oil on my fingers..)