Just to touch up no the last answer (CNET article is from 2007)
I have a 1st generation iPod Touch and these comments apply to it.

* There is no email client on the iPod Touch
- Actually there is. I have the 1st gen and it has an email client (though the original release did not)

* There is no Maps application on the iPod Touch
- There is a Maps application now

* There are no Stocks or Weather widgets on the iPod Touch
- These apps are there now

* There is no built-in camera for the iPod Touch
- Correct

* There are no Blutooth capabilities for the iPod Touch
- Correct

* The iPod Touch has a differently styled "Dock," with a reflective surface -- akin to the Dock that will debut with Mac OS X 10.5 (Leopard)
- Didn't quite follow this one.

* While the iPod Touch is sleeping, the user can tap the home button twice to bring up touch controls on the screen -- a feature the iPhone currently lacks
- I'm guessing this has changes as well

* The iPod Touch has a separate Contacts app -- it's built into the Phone application on the iPhone
- Correct

* The iPod Touch has separate Video and Music apps, whereas the iPhone has a single "iPod" app that contains these functions
- Correct

* There is apparently (and obviously) no microphone on the iPod Touch, though it will be interesting to see if such audio-in capabilities could be enabled via a third-party device.
- Correct and there are third party microphones available

* The iPod touch's headphone jack is on the bottom of the device
- Correct

* The iPod touch lacks a built-in external speaker
- The first gen does not (and no volume control buttons).
- The second gen does (along with a volume control)

* The iPod touch's screen appears to be of a slightly higher quality than the iPhone, with 163 pixels per inch to the iPhone's 160 pixels per inch.
- Not sure

Also the first gen iPod Touch was a fare bit thinner than the first iPhone.

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