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I know what you’re thinking while looking at these reviews: “Should I save fifty bucks and get the 3rd Generation iPod touch, or is the 4th Gen really worth the new price?”

I am happy to report that the improvements made from 3rd to 4th generation are worth your attention.

* Size/Shape: The new model is thinner and more narrow, but slightly taller/longer. What this translates to in real-world usage is that the device is slightly less bulky in your pocket once you put a case on it, but that it’s a tiny bit harder to grip without a case, if you have big hands. Of course, since Apple continues to put that scratch-magnet shiny back on the iPod touch (PLEASE, Apple, STOP IT! Give us brushed aluminum or something!) you will probably need a case, so the thinness is a good thing.

* Microphone: No, you don’t get the headphones with the in-line microphone anymore, but you do get a microphone built into the iPod touch. While most people focus on the Face Time, Skype, or other social uses for a microphone and lament the loss of one on the headphones, as someone who doesn’t care about VOIP, I find the built-in microphone a lot better for my purposes. I use it for voice commands in the iPod (“Play artist ‘The Beatles’”) and for dictation (Dragon’s free app is awesome) and voice memos. It also functions well for video recording. I don’t miss the in-line earbud microphone at all.

* Video Recording/Photos: While the iPod touch won’t replace a top-line video camera, and most definitely won’t replace a decent digital camera, it works as a “I happen to have it in my pocket” substitute on both counts. I don’t take a lot of photos, so the lower resolution on the camera doesn’t bother me. The video, however, is quite nice, and replaces my Flip Mino HD without a hitch. Just remember to reserve some storage space if you intend to record videos.

* Retina Display: Wow. You have to see it to understand why it’s a big deal. You don’t notice it as much in the main screen, but when you get into text displays you really see the difference. Everything is crisp, there’s almost no pixelization and nothing is “fuzzy”. Games that support it look gorgeous. It really is worth it if you intend to use the iPod touch to do any reading, web browsing, or gaming.

* iOS 4: I love the OS changes they made since I owned a 3rd generation iPod touch. The ability to group apps into folders/groups is about the best thing they did since the iPod touch debuted. The ability to do multitasking is very handy, too. The Gmail integration is much better now that it supports IMAP, and the contacts are much more friendly to Windows users since they started providing decent support for Google Contacts. WiFi signals seem to be stronger, and the battery life is excellent. All told, the little changes make a big difference.

* Video Playback: Now that they’ve increased the screen resolution to 960×640, videos are not as limited. This means that if you have a collection of 720p m4v/mp4 videos already, they’ll work with the iPod touch. You won’t need to downscale them to make them work. This also means that if you choose to output to a HDTV screen, you’ll get your full 720p video in all its glory. This is a great feature for media hounds like myself. If only Apple made a 1TB iPod touch..!

* Improved buttons: While the buttons are no longer metal (they’re now plastic or polycarbonate), they are much better-designed in terms of placement. The volume toggle has been turned into two separate buttons for up and down, and they work quite well when you’re not looking at the device (like when it’s in your pocket). The standby/power button is smaller and to the right of the top of the device, and it, too is easy to find and use when the device is out of view. Response from the buttons is nice, with a good clicky tactile feedback. They seem sturdy and yet they’re small enough to be unobtrusive and not be pressed accidentally.

* Speaker: They went from using the whole back panel as a speaker board to putting in a little speaker in the device at the bottom. This has the effect of making things sound a little better, but not without some problems (see below).

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THE CONS

* The new size means you will probably need a new case and screen protector. Old ones won’t fit. Some exceptions exist (some slip-cases, for example) but anything that was an exact fit for the previous models is too big for the current model.

* No in-line microphone on the earbuds. This is not a problem for me, but for social networking types, this will be something they miss.

* Speed is, at this point, no better than the previous model in most cases, and sometimes slower in apps that have yet to update some features. This will no doubt change, but right now expect no major boost in speed or power with the upgrade to 4th Gen.

* Still camera is low resolution. As I noted above, it’s not a crippling issue for me, as I don’t take lots of photos and the video camera is so nice, but if you’re a shutterbug looking for an alternate digital camera, you may be a little let-down by the current generation. You’re probably better off with an iPhone 4 or waiting for the 5th Gen iPod touch and crossing your fingers.

* Dock connector doesn’t sit flush with the device. It looks weird at first, but when you connect to the docking cable, the connector doesn’t seem to go in all the way if you look at it from the back of the iPod touch. This is, apparently, by design. I can’t say I like it, but this is the sacrifice you get with thinner devices. Apple didn’t want to give up the tapered design, but they didn’t want to redesign the dock connection, either. The compromise was to make the connector do what it currently does. This is not really a big deal, as it works fine and feels secure, but it does make you wonder how some third-party docks and devices will work with the current generation.

* Speaker gets blocked easily. I know this is more of a critique of App design than iPod design, but the iPod touch’s speaker being in the bottom corner causes me to end up covering the speaker when I turn the device sideways (to the left) to play a game. Smart Apps make it possible to tilt the screen any direction, but some are set on making you tilt to the left, which leads to the speaker blockage. Again, no big deal, but it makes me wonder why Apple doesn’t just put the speaker on the side of the device instead of on the bottom. There’s little chance you’d block it on a sideways/widescreen App in that case.

* Stupid shiny back: I mentioned this earlier, but WHY, Apple? Why do you keep putting this horrible shiny back on the iPod touch? It was terrible back on the classics, and it’s terrible now. Give us something that doesn’t get scratched from the slightest touch, and something that isn’t slippery! Brushed aluminum, rubberized metal, or anything else would be preferable to this stupid shiny back-plate. This, for me, is the iPod touch’s #1 bad feature.

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SUMMARY

In my opinion the newer model is worth the new price. You get a lot of extra features and the best screen on any iPod to date, and the microphone being built-in becomes a must-have feature after you realize how convenient it is to not have to hook up the earbuds in order to record something. So here’s the rundown on whether or not you should upgrade from 3rd Gen to 4th Gen:

* If you’re a reader: YES. The Retina Display makes reading books and comics much easier on the eyes (although I still prefer e-ink for long stretches or reading outdoors).

* If you’re a gamer: YES. The Retina Display, better speaker, and new gyroscope/accelerometer make gaming better.

* If you’re a social networking freak: YES. The video camera, still camera, built-in microphone, and Face Time are a social networking fan’s wet dream.

* If you’re looking for a PDA: NO. It doesn’t really matter unless you want to take advantage of the video camera for business meetings, or have bad eyes and want your address book to look more crisp. You could probably get by with the 3rd Gen, but honestly, you’re probably already using iPhone 4 so this is a non-issue.

* If you’re looking for a portable web browser and mail client: YES. If you’re on the Internet a lot, you’ll appreciate the Retina Display and better WiFi reception from 802.11n.

* If you just want to play music: NO. Don’t bother to upgrade because the music/iPod functions aren’t all that different from the previous generation, unless you want the convenience of the built-in microphone for voice commands.

* If you just want to play videos: YES. The higher resolution and Retina Diplay make videos much better, and the ability to output 720p is a great feature for videophiles.

Final verdict: For most users, the newer model is a much better value. Apple improved the iPod touch enough this time around to make it worth grabbing the 4th Gen, even if you do end up paying a little more for it than a clearance-model 3rd Gen.