Hmmm... No GPS on the new Touch. That's kinda a bummer. Biggest thing with the touch redesign is the integrated volume control like the iPhone has always had, and a slightly different (more iPhone 3G like) look, but still metal-backed. The new Nanos were just as reported widely elsewhere in advance. The Touch is WAY cheaper. $229 for the 8GB. Just a tiny premium over the iPhone, without the contract price of course.
They focused a LOT on the "Genius" feature which looks for all intents and purposes to be very similar to the MC12 Radio feature. It calculates the playlist based on previous plays, skips, ratings, etc, and uses info from the "cloud" (what other people have done in aggregate).
Hardly anything was described in detail about the iPhone 2.1 software update. No mention of Turn-by-Turn GPS (though perhaps they're going to let Garmin or Tom Tom handle announcing that), not really much in the way of new features mentioned other than Nike+ and Genius support. Did mention briefly: "Some great new performance enhancements... free to all owners, available this Friday... This is a big update, it fixes lots of bugs. Fewer dropped calls, big battery life improvements. No crashes with Apps. Backing up is faster."
Hope so.
All in all, a bit of a disappointment, really. Mostly because everything leaked ahead of time (the new Nano and lower prices). I imagine Apple is pissed about that leak.