The iPod family just became bigger with the iPod touch being the most notable addition. The user interface is almost a replica of what you would see on any iPhone.
What's new on the iPod touch:
- iTunes WiFi Store
- Starbucks WiFi
- YouTube (and Google Video)
The iPod Nano has Cover Flow, it plays video and it really is fat. 4GB and 8GB versions for $149 and $199 respectively. The iPod Classic is essentially a thinner 5G iPod with slight UI enhancements and more memory. The 80GB model costs $249 and the 160GB model costs $349.