Well, if the 8GB touch is selling well, it’s likely the cost of the more capacious–these things are not inexpensive.
And really, comparing the $45 Clip (8GB) to the $200 touch? Isn’t that like comparing a VW Beetle to a decked-out Jaguar? And even then, the touch can’t compare to the small handiness of the Clip (and the sound?). They’re simply different beasts entirely.
