If anything I wish they used a higher capacity hard drive in the iPod Touch. Really hard drive based players aren't all that unreliable.
I disagree. I actually think that apple is being responsible by moving away from hard-drive based ipods. It is good that apple maintains the classic line for those who want them (I still have a ipod 5.5g that I use when I go on vacation as opposed to my iphone that I use daily).
However, I have found, as others have, you could destroy your $250-$350 "portable" investment by dropping it once. I've gone through 3-4 of them. In my opinion, a "portable" product, particularly one which is advertised in use with people dancing and doing headstands, must be designed to withstand an occasional casual drop. I'm not sure if its hard-drives or apple's minimalist, thin is king design, but hard drive based ipods that I have used cannot meet this criteria. I'm glad to have my flash based iphone that I don't have to worry about frying the hard drive if I drop it from 3 feet.