Looks like the iPod Touch had a good Christmas, as App Store downloads on December 25th increased three-fold or more for most titles.
The boost in sales "appears to be from a large influx of iPod Touch users," according to MacRumors.com, who noted that it would have been much easier to give an iPod Touch as a Christmas gift versus an iPhone, which would have to be activated and whatnot.
This also goes to show that — surprise — people are using the iPod Touch for much more than just music and videos. I own the first generation Touch and I bet I only use it about 20% of the time for music and videos, instead using it most often for web surfing and gaming.