MacRumors is reporting that the iPod Touch firmware is out for some via iTunes, and it's main improvement is the added ability to create calendar appointments. Apple previously called this a bug, but in my opinion its more likely that Apple heard the complaints and added the functionality back. (The image shows old firmware's calendar.)[MacRumors]
@altus: You can Jailbreak your Touch and install apps...
I use my Jailbroken 1.1.1 Touch as a PDA, I patched the calendar "bug" in 1.1.1 almost 6 weeks ago...and have a ToDo App installed. And the iPhone apps, including Mail, Maps, etc. All of these can be installed using relatively simple scripts at this point.
If the only benefit to this upgrade is the iCal functionality, I am keeping my Touch @1.1.1 and using my 3rd party apps.