Heh. I have an ipod Touch, and despite all the music on it I seem to only use it for playing games.
I don’t think the ipod Touch “ruined” the ipod classic, but it wasn’t necessarily a step up, more like a step sideways: you could put apps on it, but it also had a much lower memory size.
[For the record, I seem to have become an inadvertent ipod and mp3-player collector, simply because I find them used for cheap all the time.]