Having your iPod as new will have the App Store and iTunes work perfectly. Small crashes at 1st but later just fine.
Restoring from my (your) backup, causes the Appstore and iTunes continueing to crash.
I don't know why but thats what I found out when i was testing it out.
Dont believe me? If ya want, I'll make a video just showing my iPod on default and then after restoring from back up, you will see results.
Possible Solution that I might of found.
1st. I backuped to my iCloud
2nd. I Went into
>Erase All Content and Settings
3rd. I set it up as new
4rth. I went to App Store
5rth. I went to Genuis and no crashes yet.
6th. I went to Search and search Angry Birds, it crashed once.
7th. I went to iTunes
8th. I went to Search
9th. No crashes yet.
10th. I went back to App Store and went back to Genuis (no crashes) and went to Search and search Temple Run and then Angry Birds, it loaded just fine with no crashes.
That's NOT a viable solution. This should ONLY be done when things are so messed up on your device it is beyond software repair. You're telling people to basically REFORMAT their hard drive and reinstall everything from scratch OR to put it another way, if you arm keeps on itching, then cut your arm off.
I diagnosed the "Search" issue as a problem with the number of results, at least on my friend's early model iPod Touch. When he searched for "racing" and got something like 1500 results, it would crash every time. When he searched for the game he wanted by name, "CSR Racing", he got 15 results and could download and install it no problem. I have a feeling the device is trying to render too many of the search results off-screen and runs out of memory.