Apple iPod touch 2nd Generation (16 GB) MP3 Player

PROS:
Beautiful 3,5" touch screen (very scratch resistant)
Responsive & logical controls
Built in accelerometer that really adds to the interface
Thin & slick design, very comfortable
Sound quality is good (not perfect)
Wi-Fi Capabilities
Long battery life for music playback (around 30 hours)
Lots of free applications (PDF Readers, games, utilities, news, stocks, calculator)

CONS:
Finger print magnet (it comes with special cloth but either way...)
No camera, but the iPhone camera isn't that good either..
Restricted to apple store applications and you need iTunes installed to put stuff in it.
Short battery life using applications (around 3 hours)

Overall thoughts:
It's the perfect Ipod, way better then the Ipod Classic or Nano. You can read PDfs, check mail, watch HD-like movies, play games (some of the are like Wii using the accelerometer) and you can web surf on the go, so just get one! I like to call it the the no phone Iphone because that is exactly what it is, and its almost $150 less and you don't have to sign any contract.