The trend is for customers to buy smaller and smaller entertainment devices; I see several people every day now in the passenger seats of cars watching TV on their tiny cell phones.
The Touch is more than enough for watching video. I make videos as part of my job and preview them on a Touch because I can carry it anywhere (just like our customers), including places I can't carry a laptop. It also gets fantastic battery life and, if need be, I can get a rather simple and inexpensive spare battery for it.
I own a MacBook Air 13" and the battery life just wasn't good enough for me. I got only a few hours per charge and that is if I was lucky. My eventual solution was to get an external laptop battery from Novuscell Batteries. So far, no regrets because I'm now getting an extra 12+ hours of battery runtime per charge on my Air.
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The Touch is more than enough for watching video. I make videos as part of my job and preview them on a Touch because I can carry it anywhere (just like our customers), including places I can't carry a laptop. It also gets fantastic battery life and, if need be, I can get a rather simple and inexpensive spare battery for it.