If you are looking at the iPod touch, the one alternative that is at the same level and in some cases better in performance and quality is the Zune HD. It does every thing the Ipod Touch 3rd gen does (audio, video, games/apps, touch screen, easy to use and intuitive user interface) and more (HD output, HD radio, OLED screen, more video formats.
It really is amazing. The way you navigate and the little things that make up the UI is what made me so happy right away. The available "official" Microsoft apps are killer and beautiful (ex. Audiosurf, PGR racing, hexic puzzle game), as well as a collection of hundreds of XNA/OpenZDK apps at zuneboards.com that will fill the gap between the amount of apps available for the iPod Touch and Zune HD. Video looks incredibly stunning. Battery life is really good and on par with the iPod touch.
In addition, Microsoft provides all the accessory packs you need on its website zune.net for separate purchase (USB sync/charge cable is already included with Zune HD), including an AV 720p output dock (allows HDMI, composite RCA, and fiber optic output), AC adapter and car charger/FM transmitter pack. There are also plenty of partner companies selling skins/shells, cases, screen protectors, and larger iHome like radio docks and speaker docks.
If you buy the Zune HD you will have a beastly fast, Nvidia powered device that plays music and video like no other handheld, while keeping up with awesome apps and providing the accesories to make the experience even more enjoyable.
Windows 10 and probably 8/8.1 and 7 have a built in Microsoft driver that allows this device to be used plug'n'play without the Creative drivers. Really neat aspect. The card works fine and as expected. I'm currently using the digital input with success.