Help me buy an iPod, or not.

Apple today announced the newest iteration of the iPod nano and some changes to the iPod touch, among other things. This has been an eagerly-awaited day for me, since I took the honorarium from my April gig at Benedictine University and salted away most of it to get an iPod touch once the updates came out. But I must admit that I was really hoping that the 32GB model would be under $300; I was $100 off. So I turn to the blogosphere to help me decide how to blow my stash.

Constraints and preferences: I have $232.50 saved up. I have 12 GB of music (just music, no video) in iTunes and I would like to carry all of it with me plus some video. I would like — really like — to have mobile access to wifi in a handheld device. I currently have a 20GB photo iPod (second generation? third generation? something like that). And coming up with a whole lot of extra money — OK, well, really any amount of extra money — right now is doable but difficult to justify in the family budget.

Do I:

1. Go for the 16GB iPod touch at $299, which is pretty close to what I have saved, and just deal with having 4 GB less space on the device than I currently have?
2. Somehow (!) come up with $150 and go for the 32 GB iPod touch?
3. Forget the iPod touch and go out and get one of the new nanos, which at $199 I can buy right now with no extra funding required and still have some left over — and muddle through without the mobile wifi?
4. Do nothing and just wait around for the next round of upgrades?

Go ahead, spend my money for me!