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I believe there may be a couple factual errors in the review. First the back camera is only .7 MP not 1 MP. Although the difference is small, as a percent, it is large. Second, the display is a TN panel, which almost by definition is not 24 bit but 18 at most.
When this device first came out (could it really have been 6 months ago?) I went to look at it with the intent to replace my iTouch 2G. I found the 4G to be not perfect at all.
The screen was worse than my 2G. Although it had a higher resolution the contrast was worse. In fact another website test the contrast and measured it to an very low 200:1, compared to the iPhone 4 at 800:1. Everything had a blue haze to it. As a result dark scenes suffered in both games and movies. Each one I tried at the Apple store exhibited this problem. Besides, I don't believe I was the only one who thought that with an increase in resolution there should have been an increase in size to at least 4 inches.
Handling the device was a problem. Apple's obsession with thin had gone too far. It was just too hard to hold by the sides.
The cameras were, as pointed out, abysmal. Video with the back camera was OK but stills were completely useless lacking any kind of reasonable resolution. And again the problem with holding such a thin device was an issue. The sound had not been improved from the 2G.
In the end I decided not to "upgrade" as my 2G was doing fine. The positives in the increase in RAM and processor speed were offset by other compromises I was not willing to take. I could not help thinking that Apple was really milking-the-cow by building some cheap things into latest generation, and in terms of the camera, technology many, many generations old. Edited 2011-03-22 14:31 UTC