|I did want the wifi, but the lack of a physical volume control (ie touchpad)
Yeah, this is the reason I am probably going to keep my 30 GB video iPod in addition to my iPod Touch. I use my iPod in the car (with an aux input cable) and it is hard/impossible to switch songs with the Touch - with the 30 GB I can just reach down (without looking, keeping my eyes on the road) and hit forward on the click wheel.
Also, the Touch does not function is disk mode, i.e. you can't use it to store files on like you can with the other iPods. I bought an Apple camera connector and use my 30 GB iPod to store digital pictures on when I travel (which is usally camping - no place for a laptop!). The camera connector lets me transfer photos from my digital camera onto my iPod when my memory stick is full. So that is another thing to keep in mind.
But I feel the iPod touch makes up for it with the wi-fi. It is really nice to have an internet device with me at all times...so many places have free wi-fi now and if your stuck waiting without a book, surfing the internet kills the time!
If the larger iPods had wi-fi that would be sweet, but they don't.