New iPod?

So I most definitely have to get a new computer this summer. I have an old iBook G4 that has been working just fine; however, I'm running out of space. Being a music freak I have tons of mp3 that are taking up space. Plus, I need a computer that's going to run faster. I need a new computer quick! I'm also debating whether I should get a new iPod. I've had two different iPod models and now I'm thinking I should upgrade to the iPod touch. I was hoping these prices would come down though. Apple doesn't quite understand that we're in a recession! Geez...
8 GB (1750 songs, 10 hours of video) $229
16 GB (3500 songs, 20 hours of video) $299
32 GB (7000 songs, 40 hours of video) $399