I know this post is a month old or so, but I wanted to throw in some comments.
I had a iPod G4 20g, which is monochrome, no video, but the scrolling was fast at least.
I have a lot of music and eventually filled it. For me I wanted the choice of being able to pick what I wanted and not just have a playlist of a smaller amount. There was more stuff I wanted to put on it and had to take stuff off.
This past Holiday I got the 80G Classic. I was considering the Touch, mainly because it was new, slick, cool and had web stuff. After much thought, I decided that all I needed was more space and the color and other stuff was a bonus.
Going from iPod G4 to a iPod Classic is like going from a Mac Plus to a Aluminum iMac with a Core 2 Duo.
The screen was better than expected, the menus are nice, but seem slower and the extra stuff like the games and video playback are nice. The Album art thing is new to me, since I couldn't do that before.
So, I guess if you are more into internet, video, photos get the Touch, if you are a music FREAK then you are going to need more than 16meg. Another thing I liked was the silver seemed like it would scratch less and looked more durable.