FI lost his touch in the cab on our way back from Christmas, and he has the same issue. He doesn't have as many songs downloaded as you, so space really isn't that big of an issue for him. He's used to his touch, so he'll probably just get that again. He watches a lot of shows on it, so he likes the full screen.
If you really want the touch, go to PriceGrabber.com - Comparison Shopping, Online Shopping, Product Reviews to see where you can get the cheapest price. That website is such a lifesaver!