I’ve downloaded it and looked over some of the samples. There’s a lot of stuff that can be done with it, but a lot that can’t.
The sticking point is that the most interesting part of the iPod touch is the accelerometer, which the simulator doesn’t provide. So you need to actually test on real hardware. But you can’t test on real hardware without signing up for the iPhone developer program, which isn’t available to Canadians. So, basically, I can’t write code that uses the accelerometer.
That’s no big deal, though. At least as long as keys are available before June when the SDK comes out of beta. The accelerometer is the icing on the cake for the first thing I want to work on.