Flight Attendant,
Welcome back! This seems to be a popular topic lately, and one that I'm following as well.
The IPod Touch 3 probably won't differ much from previous versions in terms of operation or capabilities. I've upgraded the software several times in my IPod Touch, so it's probably very similar to the G3 model at this point.
The IPod Touch models work reasonably well for "light duty" use in terms of checking E-mail or limited internet use. The small screen and keyboard are actually not too bad after some familiarization, however the small size of both the display and keyboard are still an issue. Battery life also seems a bit limited at times.
A Netbook is a good compromise between a PDA and a full sized Laptop - compact size, light and easy to pack. The newer units provide at least a 10.1" display (usually glossy rather than matte), 160GB Hard Drive and 1GB RAM. However, Netbooks tend to use "lower horsepower" processors such as the N270 or newer N280, so they're simply not capable of graphics applications or others which require lots of processor power (such as that provided by the Core 2 Duo processors in full size Laptops). However, for E-mail, web browsing, etc. they're just fine. A 6-cell Battery is a good idea for better operating time. Some include a built-in SD Card Reader for photos. As far as software, most don't include MS Office but just something like MS Works.
Based on some of the reviews that I've read, not all Netbooks are created equal. Two recurrent problems are keyboard performance and poorly designed trackpads. Some of the top manufacturers or ASUS, ACER, HP, DELL and TOSHIBA. Some of the models that have been getting good reviews lately are the Toshiba NB-205 and ASUS 1005-HA.
I'll definitely be buying a Netbook before my next trip, but as this is the fastest growing segment of the "portable PC" market right now, new models are introduced often so I'm going to wait a few months.
Cheers!