With the recent update to ipod software 4.1 finally the device is coming into it's own. The 4.0 software included slug like performance and nothing compelling for this iPod touch user.
However that has been turned around with the 4.1 update. The performance is back to where it should be. Now with the previously announced iBooks application I can put my own .pdf files on the device. There have been apps to put reformatted .pdf files on the iPod but for technical books that is as useless as reading the text with /usr/bin/strings.
After fixing a minor photo sync glitch I can honestly say the device is starting to be rather great.