IPOD touch is the ultimate luxury !! its has got everything one can dream of. The battery time is also awesome. And the multiple touch is brilliant !
If you are a gaming freak go for PSP, it gives you a gr8 gaming experience on the go. But if you are a music freak IPOD rocks and is more versatile.
i come to this question 3 month ago, i finally bought ipod 32g. it look good, but i prefer to buy iphone so that i have all info in one device. ps if you want to watch video or movies on ipod, check this ipod movie converter
I'm such a sucker for iPod Touch so I'll obviously recommend it, besides it fits your requirement except for gaming of course.