Well, the bummer is they removed the 16GB option. That's what I got earlier this year, and it's been perfect for me. I really don't need a 32GB or 64GB one, you'd have to be a sheer multimedia glutton to ever use all that, imho. Videos are really the the space-hawgs, and unless you just pile up everything in sight, it isn't too much of an issue.
I have tons of music, photos, programs and games on mine, and I think I've used just around 9-10GB or so.
Keep in mind that *only
* the 32GB and 64GB models today get to enjoy the iPhone's faster, more powerful processor. I'm happy with my "old" one but I could see the faster processor being useful for certain things.
What I use mine for is:
1) Wi-Fi (I use it constantly at home, and sometimes at Panera, and check news, weather, frequently)
2) Music (although to be honest, there are things that my chintzy Sansa flash-player handles far more gracefully and flexibly as a music player)
3) Games (you'd be surprised how many terrific games are coming out for this, although I don't really find the "on-screen touch-controller pads" nearly as usable as regular handheld's gamepads)
4) Photo viewing (I think the sync system is a klutz at times)
5) PDA type stuff (grocery list, encrypted password manager, scheduler, contacts etc.)
I'm pretty inseparable from my Touch now and unlike my Palm Zire 71, the Touch is slim enough to fit comfortably in a front pocket without bulk. I do miss having a camera, and I'm one of those people who might've upgraded if they'd added even a crude camera to it.
I had a heart attack moment the other day at my mom's house. I was playing this bowling game that has a Wii-like control option (using the built-in accelerometer). But when I "threw" the ball, I let my Touch slip, and it went flying in the air and banged on the hardwood floor twice. Thankfully, my silicon iSkin Duo case protected it and it was fine. Whew.
Yeesh that was scary...