I bought the new 8GB iPod Touch to replace my 30GB iPod Video. I am very pleased by the video size and clarity, as well as sound quality.
Another benefit is the wireless internet capability. Fairly simple to set up, although it is hard to see standard web pages on the small screen. I haven't noticed a way to zoom in, so unless you have very good eyesight, it may be hard to read the webpage.
The earbuds that came with the product are the standard iPod ones. Slightly painful to wear over extended periods, they nevertheless give good sound.
As far as battery life, the iPod Touch seems to get maybe 24 hours worth of continuous music playback. If using the iPod for the video option, you probably won't get more than 5 hours of playback.
Price is a bit much for what you get. Especially for the 8GB option. If you are willing to shell out the money for the touch, pay the extra money and get a 16GB (especially if you want it for video more than music).