The display is, hands down, better than the 2G's. Not just the image quality, but finger prints don't create diffractions as they do on the 2G.
That's good to hear, because by all accounts, including Apple's own specs pages, the display is not the same as used on the iPhone 4. same resolution, but not the same package (panel and glass). Supposedly no IPS and no oleophobic coating on the glass. For that matter I don't even know if the iPod has the gorilla glass used on the iPhone.
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