I currently have an iPod Touch 1g but I feel its time for me to upgrade. Should I wait it out till September for the inevitable 5g or get the 4g now.
Unless you're going to be hardcore gaming on your iPod this summer (which I probably will be), wait until next fall for the new generation. But yeah, if you're planning on using it a lot and want some of the higher quality old/new releases, get it now.
It's unknown right now whether or not Apple will actually release the next generation-- there are rumors that they'll release an updated "iPhone 4S" with better specs than the iPhone 4. Apple has never released a new iPod Touch generation without a new iPhone, so you should probably just wait to see how it pans out. http://www.macrumors.com/2011/05/13/iphone-4s-coming-in-september-with-sprint-and-t-mobile-support/
The beauty of apple, they got people doubting if they should buy something that is hardly a half-year old. With the A5 processor slated to come out next, the 4gs are already old news. To put it simply, you will regret getting an ipod now when a new one comes out. But you are missing 5 months (give or take a bit) of some of the best quality portable entertainment out there. Weight the two options and what you plan on using the ipod for. For me (just got an ipod), the entertainment value of it now won overwhelmingly. Now to see how much I regret this fall.
I'd say wait. Due to the lack of memory some of the new games don't run great on the iPod Touch 4. (espechially on iOS 4.3 wich uses ALOT more ram than 4.1 and 4.2)
Personally, I don't really think that the 1st gen iPod is very good. What I'd do is get a cheap/used 2nd/3rd gen iPod off eBay and wait a couple months for the 5th generation.
I generally use my iPod for music but lately I've been really interested in that upcoming game Dream:scape.
Well, if it's just for one game, i'd say wait. No use in getting rid of something that works fine as it is.
I agree. Although the generation 4 iDevices have only been around since last June/July, they're already becoming outdated. Anyway, DreamScape isn't going to leave without you, AND you'll be able to get all the new releases for at least a year or two after this Fall.