I've had my 32 GB 5th gen iPod touch for 1 year & 1 month now and it's ok overall. For music it's good (iTunes Radio might lag and crash a lot while using other apps), the camera is pretty good but in low light it's bad, FaceTime works well (both video and audio calls), the display is awesome for watching videos in 720p or 1080p, but games is where the A5 chip starts to show it's age. Angry birds, cut the rope & similar types of games play very smoothly but games like asphalt 8 (or 7), GT racing 2 and similar types of games either lag, crash, or are just unplayable.
Remember I'm just telling you my experience with my 5th gen iPod touch to help you decide, everyone uses their devices differently so it's best to choose the device that suits your needs best.
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Tapatalk.