I own an Archos 43 (16GB internal with an microSD card slot), and I really like it. Keep in mind with the Generation 8 Archos tablets (Archos 28, Archos 32, Archos 43, Archos 70, and Archos 101), only the Archos 70 and Archos 101 have capacitive touchscreens, so they are the only multi-touch capable devices in the product line.
Since posting my answer, some new products have been announced. Check out the Amazon Kindle Fire and Samsung Galaxy Player 50, although both of those are larger than an iPod Touch.
Also, Archos has announced some new ninth generation tablets, the Archos 80 G9 and the Archos 101 G9.