My 12 yr old daughter just bought an 8GB ipod touch tonight with some babysitting money. She was SO excited -- and, I can't say I blame her. Cool looking product. She's going to be very disappointed tomorrow when she learns that wifi doesn't work. After trying to enter the password to my wifi network numerous times on the touch, I kept thinking to myself, I must be missing something. But, alas, after reading this thread, I see that Apple, once again, has delivered another poor quality product. Great concept/design -- poor quality/engineering execution. I have 2 Dell laptops, a PS3, a PSP, 2 Nintendo DS's, a Mac mini, and an iphone all working happily on my wifi network. I'm not a novice in this area. I have no intention of messing around with router settings to try to get the ipod touch to work. It should've been as simple as it was with the 3g iphone I just purchased -- enter the password and it's on the network.
Another recent bad experience I've had with Apple is the 3G iphone, which has extremely poor 3G modem performance. The phone isn't really usable as a cell phone. I'm on my first replacement; going for my 2nd replacement (3 units total) this weekend. After that, I'm going to have to give up and go for a Blackberry. Similar to this ipod touch wifi issue, there are many thousands of forum posts with people experiencing poor reception -- with no acknowledgement from either Apple or AT&T.
Another recent bad experience I've had with Apple is with a 24" iMac which I purchased at the beginning of the year. After 8 months, it stopped powering on. Again, a search through the discussion forums shows thousands of posts with people having the same issue. At least that was a quick/easy fix; although, I lost my computer for the better part of a week waiting for the replacement part to arrive.
Now, with all my family members, we've collectively owned more than 10 ipods over the years. Never had any problems with any of them until this ipod touch. Given the recent experiences I've had with the iphone and imac, I should've known better. Should've checked the forums first before buying. At this point, it's safe to say Apple is struggling with their engineering execution. As they try to grown market share and expand into other segments (i.e., cell phones), I think it will get worse for them before it gets better.