I just bought a Creative Labs Zen (30gig) for $200 and I'm completely happy with it. I like it a lot better than the Zune and I-Pod video. This I-Pod touch does look cool though, but I definitely wouldn't spend no $400+ for it.
hey you can add programs to them ipod touch..
but you would have to have a hack.
so far i got a real aim , rss reader , irc, money management program, voice notes, nes emulator and a couple games on it and it feels like a mini mac on my phone...