Steve used to say that the iPod Touch was the funnest iPod ever. I think it is now the Nano. The Touch does more things with all the apps. The Nano seems to be more spontaneous.
What about making quick movies of your friends would not be fun. Some quick improv with your friends. Very creative. A laugh a minute!
We weren't ready to give her a Touch just yet. You do have to consider the networking possibilities of the Touch as having two sides. Yes, very useful for e-mail, web browsing, App Store, iTunes. Too useful because you can't exactly lock the browser down and do you really want your 11 year old out there unsupervised?
What iPod are you?