Yes, I own an iPod touch
Pros: good internet surfing, pretty, very entertaining considering all the apps, media player is quite nice, great programming, and more
Cons: Crashes quite a few times, nothing serious(it's usually an app's fault), no camera, needs a bigger internet connection radius, the headphone jack is on the BOTTOM, no flash player except for youtube
The internet is quite fast, but then again it depends on the server you're using. It's faster than my computer, so there you go.
Wifi: Well I just told you. It finds any server within 100 feet, but that can be shortened tremendously by walls and such. It needs a bit of a wider range.
My favorite app: Tap Tap Revenge. It's sort of a mix of guitar hero and DDR. It's free, has beautiful graphics, and they add new songs every week. Another favorite is Glyder. It's a paid app, still pretty cheap, and it's AWESOME. It's like a fantasy video game, and the character flies around completing tasks and collecting jewels. Sounds sort of lame, ut it isn't.
Apps don't make the iPod slow, unless you have a bajillion of them, or if the programmer who made the app makes a mistake and causes the app to crash.
I would reccommend it, but I'm warning you - you'll get spoiled.
hope this helped xP