I wonder if Nokia (who I have always rather preferred as a company, though as you know I am ideologically opposed to much in the way of support for for-profit companies like Apple, Nokia or Chelsea) can fight back. I kind of think not. The N800 looks very sad in comparison, particularly as the firmware update seems to have made it look more of a mess than it did before. Compared to the iPod Touch it looks much more like a Linux desktop shoehorned onto a small device, if you had to draw a continuum between the iPod Touch and the EEE, you would put the N800 1% away from the EEE. The EEE, of course, has a real keyboard. If Nokia were going to get anywhere with Linux or Symbian they would, I fear, have got there by now, and OSs and companies get less rather than more flexible with age.
Surely though, the deal breaker with the iPod Touch/ iPhone UI is the lack of a clipboard (or a brave new paradigm achieving the same goal(s))? One of the articles about the UI update suggested that as yet there is no clipboard. Clearly it would compromise the simplicity of the UI, but I don't see how it would be possible to do much more with it without one.