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Before i start let me just tell you “what’s New” with the iPod touch Third generation” :

-Faster Cpu/Double the ram/Better graphic (faster Boot time/faster loading is all what i did notice)
-Double the storage for the same old price
-Voice control (I’ll explain it in a second)
-Latest firmware for free
-New Earbuds with built in remote+Microphone (So you can use voice control)

And that is everything~ depends on your needs upgrading from 2G to 3G might be not worth it.

*Important Note* : only the New iPod touch 32GB/64GB are third generation ~ (8GB is repacked 2G) Details below.

About the new Voice control function, if you love to take your iPod with you to the Gym the new feature “Voice control” is pretty cool, it does allow you to control your music via your voice, no need to get the iPod out of your pocket you can simply say “Next” to move to next song, say “shuffle” for shuffle , say “Pause” and music playback will stop etc, that is why i recommend the iPod touch over iPod classic for gym users, my friend bought an iPod classic and now he complains that the iPod classic is too heavy for him when he goes to the gym and he will have to buy another iPod “properly Nano” for his Gym, for me i use my iPod touch for the gym, it’s so light that sometimes i forgot that it’s even in my pocket.

After playing with my iPod touch 3g for a while i honestly did not notice any difference from the outside or the inside compared to my old iPod touch Second generation (It’s supposed to be faster but i did not notice anything during music and video playback or the menus, however browsing with safari and loading facebook was faster, same thing with boot time), you properly can only notice it being faster with heavy applications since video/music playback is already fast enough with 2G.

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From : Cheap Apple iPod touch 8 GB Customer Reviews

iPod touch is a great iPod, a great pocket computer, and a great portable game player. Listen to a mix of songs automatically put together by the new Genius Mixes feature. Watch a movie. Surf the web. View rich HTML email. Find your location and get directions with Google Maps. Discover games and apps you’re sure to love with new Genius recommendations for apps. And since iPod touch now comes with the latest 3.1 software already installed, you can start using fun, convenient features right out of the box.

Apple iPod touch 8 GB (3rd Generation) NEWEST MODEL From Apple Computer

Features

• Size: 8 GB
• Brand: Apple
• Model: MC086LL/A
• Dimensions: 4.30″ h x .33″ w x 2.40″ l, .50 pounds
• NOTE: This is the 3rd generation 8 GB iPod touch that comes installed with iPhone OS 3.1 Software; it physically looks identical to the 2nd generation 8 GB iPod touch
• IMPORTANT: To get started using your iPod, charge your player using the USB cable for at least 2 hours
• 8 GB capacity for 1,750 songs, 10,000 photos, or 10 hours of video
• This third-generation 8 GB iPod touch includes standard Apple earphones; it does not come with earphones with microphone and is not compatible with Voice Control
• Up to 30 hours of music playback or 6 hours of video playback when fully charged
• 3.5-inch widescreen Multi-Touch display with 480 x 320 pixel resolution
• Supports AAC, Protected AAC, MP3, MP3 VBR, Audible, Apple Lossless, AIFF, and WAV audio formats; H.264 and MPEG-4 video formats; JPEG, BMP, GIF, TIFF
• One-year limited warranty with single incident of complimentary telephone technical support