iPod Touch 5Th Gen. or nookHD+

I would decide on what you want to use the device PRIMARILY for -- if it's as an eReader go for the nook, it has the bigger screen, yes? Then you'll have a device with a bigger screen that will also do everything that the ipod touch will do. If its for portability and music, go with the ipod. It will also function as an ereader. I have a kindle that I love so I'm more of an ereader girl.. but I'm getting my son the ipod touch for christmas because he wants something to take with him to play his music on.

Plus.. the Nook is less expensive - right?

The nook HD is a tablet not exclusively an ereader.
Nook has access to a version of the android market, it has apps , games, and even a version of word, and a pdf reader.
Get the NookHD+

I wouldnt do the ipod5 they are selling the 16g ipod4 for 199 which is cheaper and the big difference is the color and if you don't get a sturdy cover (which hides the color anyway) your kinda silly since they are pretty fragile. The nook HD does have apps and games and stuff but if you use itunes go with the ipod since they are compatible.

I say the Ipod. They can be ereaders too if you really want to read someone on it. My husband and son's have a 4th gen and they love them!!!!!!!!

What are you wanting to use it for????
Then from there, you get the device that will provide you with what you want, per how you want to use it, and per your budget.

The Nook, has a bigger screen. So if you plan to use the device to READ... then to me, you'd want a bigger screen, which the iPod touch does not have. It is smaller.

Then, Apple products, all work together and can be synced together. So, that means, if you have an Apple computer and other Apple gadgets, you can sync it all together and download things, very easily. And Appple apps for their gadgets, are very easy to find and get and many are free too. Which includes, games. But they also have books you can download and podcasts etc. But again, the iPod screen, is smaller... so reading a "book" on it, is harder... the font of the words, is just smaller. Because it is a smaller screen. SO then, I would get an iPad.
Which is so similar to a Nook HD, but different brand and operating system.

Again, research it, but know what you want it for.
Then choose your gadget, based on that and your budget.