When the new iPod Touch got unveiled at Apple's September Media Event, everyone was impressed with new added features including front and rear cameras, gyroscope, a new processor and a retina display similar to the iPhone 4.
Now it seems that in an attempt to make the iPod slimmer (or decrease the price) there are two drawbacks. Firstly the rear camera which shoots video in 720p can only take photos at 0.7MP whereas the iPhone can take 5MP photos.
Now according to 9 to 5 Mac, the retina display isn't exactly the same as the iPhone 4. If you were to go to Apple's website and compare the technical specifications of the iPhone 4 vs the iPod Touch you will notice that the although the iPod has the same pixel density as the iPhone 4 but it doesn't specifically say that the iPod Touch has a "Retina display" and there is no mention of the contrast ratio either.
For further proof of this watch the video below, at 00:15 you can see that the iPod Touch's viewing angle is not as wide as the iPhone 4's:
After seeing the initial specifications of the iPod Touch, I was quite impressed that Apple had managed to include all of those exciting new features and even so offer an iPod for as low as $230. Now though the situation is not so rosy, the drawbacks mentioned here are quite substantial and although anyone looking for portable device will buy the new iPod Touch without a second thought, I can't say the same for people who already have the older versions of the iPod. I for one don't see myself upgrading to the new iPod Touch due to these drawbacks.