Amazon has the Apple iPod Touch 8GB 4th Generation (MC540LL/A) for $190 with free shipping. Features a 3.5" widescreen display, multitouch interface, built-in speaker, 720p video recording, front-facing camera, Wi-Fi, and compatibility with thousands of apps at the iTunes store. Upgradeable to iOS 5.
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What is the purpose of 8GB? Add a few apps and a small playlist and your out of space. Just start with a 16GB for $200, Apple.
What generation of iPod will you be able to change the batteries yourself?
The same generation that will have a flash memory expansion slot.
The same generation that will have a USB port.
The same one that will cost only $19.99.
I guess I'll have to continue to electronically worship someone else besides Jobs then...