I think it really depends more on what you need out of the device.
The iPod Touch is obviously more portable than the Acer and much more versatile than the iPod Video. Not only is it a better music and video player, but you can also use it to organize your Contacts, AddressBook, and Calenders. WiFi allows you to browse the web on a very competent web browser, use the Maps application for maps and directions, or talk to people on AIM or Yahoo. Plus the wide variety of apps now being developed offers a variety of games and other things to keep your interest.
That being said, the iPod Touch is NOT a computer. The web browser can't yet handle Flash or a lot of other plugins. The PDA applications are great for the average user, but not as robust as some other smartphones out there. The Acer will probably be better for you if you are looking to do some actual computing, but obviously you can't just keep it in your pocket at all times. Keep in mind that the Acer will also be a limited device as well; the processor and RAM capabilities probably won't be very high and it lacks an optical drive, meaning all software and music will probably have to be loaded by ethernet.
I have both an HP laptop and an iPod Touch, and my HP hardly leaves the bag, whereas I take my Touch everywhere. That may be different for your needs, but that's my 2 cents.

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