The first change is that it's marginally thinner and the back panel is now curved. It's predecessor was hardly Phill Jupitus, so this is a minor upgrade (those who like the heft of an iPod Classic may even find it too thin).
The other physical tweak – a new volume switch on the side – is more an admission of a design flaw than a new feature. Having to unlock the original Touch then fiddle with its inaccurate, touch-sensitive volume bar was certainly frustrating, so this is an improvement. We were a bit concerned when we found that the volume buttons work even when the Touch is locked, but the buttons are tough to press accidentally.
Perhaps the biggest change is the built-in Nike+ capability. The receiver is neatly built into the Touch, so you only need the shoe sensor to get it working. There's also a shortcut to the Nike+ settings on the main screen.
But what's disappointing is that, despite the Touch's bigger, touch-sensitive screen and Wi-Fi antenna, the features are no different than what's available on the Nano. A proper Nike+ app is surely imminent, but both Apple and Nike are keeping schtum on exactly when this will arrive.
The final extra, the speaker, is naturally quite tinny, and goes up to worryingly high levels for anyone worried about being 'serenaded' on the bus. But it could be handy for watching vids in small groups without resorting to a headphones splitter.
All in all, then, this is very much iPod Touch v1.1 rather than v2. Current Touch owners have very little reason to upgrade, but with the new prices it's an even more tempting gadget proposition for everyone else.
Watch our hands-on video with the Apple iPod Touch 2g
Watch our hands-on video with the Apple iPod Nano 4g