Step One: buy a burner smart phone. I recommend the Alcatel Evolve. $60 at Best Buy.
Step Two: buy a kick ass mini SD card. You can get 64 GB for about $30.
Step Three: enjoy your new wi-fi enabled media player with endless exchangeable storage.
Better than an actual Touch, because even if it dies you still have your files, which can be accessed with a card reader and laptop.