Even then, I can't think of much you've got to degrade for the iPod touch. The big stuff (screen/ram/graphics/cpu) is near enough identical. If you support the previous gen iPhone, the current gen iPod should be no problem. You can pick up location from wifi... all I can think of not being available is the compass...
The latest iPod touch does have a camera. It looks like it was an amateur mistake to not include the iPod touch to me. Just because it doesn't have a GPS chip doesn't mean you can't get your location.
