You're not getting jipped, flash memory in sizes like that make the price in the right range. Add that to the touchscreen and wi-fi as well as all the features and I think the prices for the touch models are okay. If you have 6 gb of music it would be a waste to get the 80 gb classic in my opinion. I would go for the 8gb if your music isn't growing that fast, and the 16 gb if you want more movies and your music collection is growing.
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I'm going to ask for an iPod for Christmas but I don't know which one. I look at the iTouch and almost start crying as soon as I see it in action but then I look at the price for how much memory you are getting wipe my tears and close the page. The classic I can get a TON of memory for a fairly cheap price but I have had a video for about a year now and I think it's time for a refreshment. I don't want to feel like I'm being irresponsible for getting one knowing full well that I really am being jipped but its just so cool. I have about 5.5 gigs of music or 1,500 songs and I like to have a few videos on there would the 8 gig model be enough? Any thoughts on this? Which is the better buy?