I'm weak. I gave in to the dark side. I've got a 32GB 2nd gen iPod Touch on order and my trusty N800 is up on eBay. Got a good price on Amazon. Only $379 with free shipping and no tax. Compare this to the $324 I paid for the 16gb model I got for my daughter, albeit engraved.
There will be some things I miss (Rhapsody, Samba, Flash, multitaking apps, divx, etc.), but I'll gain a lot too (oodles of accessories, Pandora, killer browser, iPod player, etc.). After playing around with Safari on my daughter's new iPod Touch, going back to my N800 was painful. The browser basically sucks in comparison.
The feature that really put me over the top was the 2nd gen's speaker. It was the one feature I just couldn't give up on my N800, though it has stereo speakers.