I got one a month ago right after the 2nd gen came out. I have an 8g touch, it replaced an 8g 2nd gen nano that I lost
besides the touch itself, you will need to get a film screen - expensive at the apple store, cheap on ebay. this is a clear barrier to protect the touch from greasy fingerprints etc.. a case of some kind is a good idea also.
There are lots of cool games and applications you can get for free or just a $1 or $2 at the application store. These take up very little room and are fun. My DD10 likes to use it in the car, she starts up some music and then plays games at the same time.
Videos are memory hogs. If video use is a serious part of the usage, consider stepping up to the 16g or 32g touch.
The wi-fi capability is what makes this thing so cool. But it's also a drawback, because there is no option to have plug-in internet access, and since it's not a phone, there is no over the air access either. You can download applications via your computer and itunes so wi-fi at home is not absolutely mandatory, but it really helps. Things that need the wi-fi: accessing the internet, the youtube link, accessing your email accounts, getting the weather, maps, and certain applications you might download. If wifi access is limited, you might just want to get a new nano since they have video capability now.
I do find that I need to charge the touch every night. The battery lasts longer when the wi-fi is turned off, but it doesn't run for days on a single charge.
I love my touch - and wish I could justify the cost of an iphone, but att coverage in my area stinks and the monthly fee is so much higher than my current cellphone. this is a good compromise.