The biggest thing about the Touch that differs from any other iPod in the line is the touch screen and the size of the viewing screen itself. Now, I had the chance to get an 80gb iPod Classic (which I would have loved the storage on it) but, to be honest, I couldn't begin to listen or watch that many hours straight on the Classic (but the on hand selection would be great). And, if I was going to watch video, I wanted a bigger screen. So, the Touch was pretty much it.
Right now, I almost have 2GB of music on it, and 300MB for video/pictures and I'm almost out of music... almost. So, video will be what I put on it after everything else.. and I have a feeling I will have enough for a 6 hour flight.
And... I have some batteries charging right now for my camera, so we will have some pictures after a bit.