You can basically use it the same way that you would use an iPhone in places where there is wi-fi. There are lots of good apps from the iTunes store--many are even free.
I LOVE my touch because it can hold my entire music collection, where as my nano was not even big enough to hold all of my playlists.
You can certainly use it to get on the internet, to read books and to watch TV shows. You can also use the camera, keep your calendar and contacts on it and use it to Skype.
Here is a random list of some of the apps that I use a lot: Sparkpeople, Facebook, Pinterest, NPR Music, Slacker Radio, Instagram, Kindle, Yelp, YouTube, Netflix, PBS, NPR News, Pandora Radio, Bump, Zite, Mapquest, Google Earth, Google Maps, the Weather Channel, GasBuddy, C25K, Zumba, JeFit, Sound Hound, Piano Free, SoundCloud...
I also have some more fitness apps, shopping apps, travel apps, cooking apps, etc.
Dances: salsa (standard/LA), casino, rueda de casino, cumbia Colombiana, bachata, mambo, cha-cha-chá, merengue, reggaetón.
Currently learning: Mexican cumbia, danzón, Cuban rumba
Dances to Learn in the future: flamenco, tango Argentino, samba, belly dancing, bhangra, ballroom rumba
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