I have an iTouch; I love it with a passion. If you get one now, it will be far better than mine. I got mine in a raffle two years ago; it's the 1st gen.
To be honest, I try and stay away from all the apps unless It's one I know I can and will use it productively. My little cousin has a 2nd gen; he's completely addicted to the games and apps.
I often use the YouTube app. You can find interesting videos you wouldn't normally find instantly on the internet. You can bookmark videos too.
As far a music videos go, try and stay away from downloading to many. They take up a lot of space and you would get bored of them eventually and just stop watching them.
Overall, it's a cool iPod to have. It's very versatile; you can do many fun things with it. However, after a while, you may find yourself using it strictly for music more than anything else.
I don't even know the price variations on these things anymore, but if you touch is more expensive then the classic, I would get the classic. (Or nano)
It's up to you now. Hope I helped.
EDIT: Just realized how old this is. D: