I had an old 3G before my touch and so this is like getting broadband internet for the first time. In general everything is a little easier to find. There's a really cohesive design heriarchy that's kind of confusing at first, but makes total sense after an hour or two. It totally changed the way I do my web stuff- Instead of dragging the laptop to the couch, I just whip out my Touch and poke around for a few minutes. You can download the NYTimes, too, so it's nice for subways.
As for playing music, the browser is A++, but controls can be a little spotty. In general the "touch" aspect tends to be about 85% accurate with large icons and gets less and less accurate as you go smaller and smaller- And the seek and volume icons are teeny tiny.
I used to have a 60gb that was PACKED, so a 32 is a downgrade, but I think it's a good thing. Instead of keeping 55 gigs of shit I never listen to, I'm really carrying around just the stuff I like and listen to. Speaking fo which, iTunes interface is nice now. Espec. for updating the iPod.