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I upgraded; but then, I only use my touch for a toy. I mostly use it to stream music and radio shows (BBC, AOL Radio, AccuRadio, Pandora, etc). I also surf the net, read news and an occasional email.
I don't do business email, calendar, contacts, etc. Nor do I do social websites like Facebook or Twitter. Reading books is out, because the screen is too small. I also don't load music on it. I much prefer my Sansa Clip+ for that function. It's a much better player and much smaller. I also don't pay for content of any sort. I only use free apps and services.
I never carry the touch around, because it's too big. It mostly stays home in a speaker dock. On vacation, I plan to take it with me to watch movies and to use travel apps.
So far, I haven't had any problems.
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