One final post on this issue ...
I am on the road a lot and for weeks at a time so the music I don't bring I can't listen to. I picked up a 1st gen 16GB iTouch a few years ago and still have it but the battery is not lasting so long any more. I then got my first smart phone, a 3G iPhone that replaced a Moto Razor and it to was 16GB. I managed to fill both of them very quickly and if I were going to upgrade to the newest iTouch I would surely get the 64GB version because between the 16GB of music I have I would like to be able to have a decent amount of video with me as again, I travel a lot.
Three months ago I replaced my iPhone with the Evo that came with a 8GB card. I had to pare down my music selection to fit on it and there have been many times I wished I had music that I didn't download to it. If I had more memory that would not have been a problem. A few weeks later I picked up a 16GB Sandisk card and for a time my music collection on the phone was complete, but when I did the Froyo update it hosed my 16GB card so I've been limping along with the 8GB card again -- UGHH...
So, I would love to get a 32GB card when the prices come down so that I can have all my music and have room for other things like movies, apps and data. One thing I think we're going to see going forward is the use of your phone as kind of a personal cloud that YOU control and can't easily be data-mined. I can see the day when you sync all your devices to your phone as it has your data. But, to do that you need the storage.
Last question: if it were the same price would you have 1TB of storage or would you opt for the 8GB version?
Brian