Wow, I got my itouch a little over a year ago for christmas and it's still going strong. It lags a little bit every now and then, but its not too bad. One time it did erase all my songs for some strange reason, but luckily I have them all on my computer and I just reloaded the darn thing. Hasn't happened since. I still think the original ipods were much sturdier, but I do enjoy my itouch for the most part.
They have a 3rd generation touch now? Wow! What is different on that one from the 2nd generation?
I did notice that I have to start deleting some music off my ipod soon. I have a 32GB and its more than 3/4 of the way full. I have so many songs I don't listen to, but not enough time to go through them all and delete what I don't want.