As an avid reader, I'd give up my iPod Touch. I could easily go back to my Palm, which has many of the same features as the iPod Touch, (music, audiobooks, reading apps limited video as well as its PIM features). The iPod Touch is more robust than my Palm but I'd survive without it.
I would *not* be reading as mush as I am now if I only had my Touch or Palm. In fact, just owning my Kindle had kicked me back into being an avid reader (I haven't been one in some years).