I've had my 32gb iTouch for about a year now. I have every bit of music I'd want to listen to stored on it. I have every picture I've taken since 2000 on it. I have apps for corporate email, facebook, checkbook, SSH, etc plus all the factory apps. I still have 10gig free. The battery lasts as long now as it did when I bought it (about 2-3 days of my average use). It doesn't have a standard USB port, but 3rd party cables are cheap, so I have one in my car and in my computer bag (as well as the one at home permanently attached to my PC). I can charge via the PC, a cig lighter adapter in the car, or a wall-wart adapter. I rarely use anything other than the PC USB port for charging though. I use it daily, but only for music about 2-3hrs per week. I use it more as a pocket-able PC than as a music device. It lacks a radio, but I'd rather listen to Pandora than AM/FM. It does voice recording as well. If I have WiFI available (surprisingly common these days), I can surf the web, send/receive email, watch a movie (netflix app), listen to radio (pandora), or keep up with Facebook.
If I *only* wanted music, then a Sandisk Sansa would be my choice. They're so cheap as to be disposable, but they at play music well enough. I didn't buy my iTouch for music though.
Chris