Honestly considering the price difference, and then what you get for your money features wise and such, I'd go for the Touch. I'd be comparing size if it was me buying an iPod, but they're both 8GB, so it doesn't matter.
I have the new 160GB classic for these reasons. A touch would have been amazing, but I need the biggest one because I have so much music, and that costs a ridiculous amount of money.
But, yeah, my verdict after the slight digression is the Touch over the Nano.
EDIT: Oh, never mind, then :L