Are you able to get by with an 8 GB Contact?
Yep, based on my experience having a iPod Touch 3rd Generation 32 GB, and on my recent local purchase from the 4th gen (this current model) within 8 GB capacity. When while using old 32 GB, I discovered that I barely used its greater storage capacity. (I don't haul around lots of music or videos - I just transfer what I wish to listen to/watch for each street trip or listening/viewing cycle utilizing iTunes).
Apps, I discovered, don't occupy much space, even games and books don't occupy much space, unless you wish to haul substantially more of all of your collection with you. Amazon's Kindle application is esp. device friendly, because you can archive books you've finished to Amazon instead of keeping them about the device. ITunes is a great method to manage what content you need to store on your home computer - which becomes sort of large "docking device" - and what you need "to go.”
As the net book substitute, storage isn't actually that important. I can examine my bank balance, transfer funds and execute orders on the brokerage account, listen to stereo on Pandora or Slacker, watch music videos (and much more ) on YouTube, Skype, flow Netflix, and do a good deal of other stuff on the actual 8 GB just fine.
In fact in hindsight really the only reason for me getting the iPod itouch 4th Generation 32 GB version within the older edition was to find the faster processor. But in the present generation, all the hardware about the 8 GB edition matches the hardware about the larger versions, save the "hard disk" space.
The Touch was marketed as a music player having a cool touch screen. It has become marketed as a game device, but the truth is, using the new higher resolution screen, it's a mini-iPad. Yes, you have to zoom to see some web content, but reading a book is a lot crisper on this unit than about the last generation, thanks to the greater screen, and watching videos is more preferable, esp. Netflix streaming videos. It is a tossup as to whether watching videos about this, with no stutter and completely crisp, is better than viewing an occasionally stuttering, less sharp, but much larger video on the netbook.
The iPod Touch 4th Generation 8GB makes a pleasant intersection on my personal "cheapness" as well as "minimalist" curves. The price doesn't enter nose-bleed territory where I begin to wonder whether a netbook might makes more sense, and it's inexpensive enough too susceptible to the toils of daily deterioration - keeping it handy within an outside day pack pocket, rather than more safely stowed deep within the pack. Plus, if I ever DO obtain a hankering to carry more than 2 or 3 lossless encoded albums and more than 2 to 3 hours of video at a period, I can turn this to my kids for game as well as Netflix streaming use.