The iTouch has one distinct advantage. Wifi. If you have or can set up Wifi internet in your house you can surf on it in real time, from your bed or whatever. It's good for coffee shops, airports, libraries, malls, chapters etc too if you need a CP fix
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On the other hand, if you need the space of the 80GB Classic you can always get an extra warranty for like $60 that will cover the hard drive.