I had high hopes for Apple to slowly get rid of its older iPod formats (nano, classic and shuffle) and focus more of its energy on the iPod touch in today's Rock and Roll event but to my disappointment, the 3rd generation iPod Touch is pretty much the same as the 2nd gen. Still no integrated mic/GPS/camera. Looks like Apple pulled an iPhone-3GS kinda update to its internals only with faster hardware and more internal storage. The only good news is that prices have come down a bit for the iPod Touch.
The shocker for me was to see Apple putting a video camera onto the iPod Nano 5th gen along with a bigger LCD and FM Radio w/ live pause. I just don't see the point or appeal here. A video cam is much needed on the iPod Touch. But apparently, Mr. Jobs thinks of the iPod Touch only as a video gaming platform... whatever!
If you've been holding out from buying a 2nd gen. iPod Touch because you were waiting for the new one, I would say go ahead and save some money and pickup a 2nd gen. Wait a year and my bet is the next iPod touch will have the camera and other much needed features.
BTW - iPhone/iPod Touch firmware gets an update to 3.1