Is there a chart that list the attributes of each model iTouch? You know a column for G1, G2, G3... I want to upgrade my G2 but do not need many of bells and whistles (camera, retina...) that are offered. A faster processor would be nice though.
I confess to not really understanding your hair pulling. You have a device with half the RAM of the 3G or 4G. The 4G has a better processor than the 3G, and whether you think you need them or not, it's not like the camera or retina add anything to the cost (never mind that anyone who poo-poos retina clearly hasn't spent much time using a device with it, it's one of those features I would never do without having used it for this long).
At any rate, we're only 3 months away from the 5G touch. MOST apps of note no longer support the 2G touch. By this time next year, the same will start to be true for the 3G touch (because it has the same anemic RAM as the 2010 4G and 1G iPad, it will probably be viable longer than the 2G). If you're going to upgrade now instead of waiting on a 5G, the 4G is a no-brainer.