This Touch is VERY practical for reading NYTimes articles or USAToday articles in their reader applications, optimized for this size display (crisp, large type). VERY practical for browsing the regular on-line editions of most newspapers (tap once to fit a column to a screen with nice readable type). GREAT for YouTube since the YouTube app included with the device is optimized for delivering high def YouTube content - if available, HD videos are automatically preferred. GREAT for Netflix and Hulu Plus. GREAT for gmail and ok for Facebook (I am sure FB will make its dedicated app more user-friendly in the future).
Great for online banking and stock research/trading.
Great for catching up on tech websites in their "mobile" formats.
Here's 4th Generation of Apple iPod touch and 5th Generation of Apple iPod touch Selections: