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On 52 Tiger:

The best part is that the thinner model has far superior storage.

The iPod Touch is often sneered at for being a dumbed-down iPhone, but on the other hand that is also its greatest advantage; you get almost all of the power of an iPhone in a smaller and lighter package that doesn’t require a contract.
A first generation iPod Touch was my first iOS device and didn’t regret it for a second.

The other thing I want to mention is that despite its size, the first generation iPod still doesn’t look dated, we’ve just gotten used to the way they look. 

Picture: Apple iPod & iPod touch by m-s-y on Flickr.