the iPod Touch is a turd.
add email app and we'll talk. Add maps and notes, too, and I'll give you my credit card details.
I'm betting that someone will find a way to copy the applications from the iPhone to the iPod Touch. They're basically the same thing so I don't see why it can't be possible. Also, the screen is the same glass I believe as the iPhone and it has been proven to be pretty resistant to scratches.
The iPod Classics do use a 1.8" HD and the 160GB is as big as they come.
http://www.macworld.com/news/2007/09/05/toshiba/index.php