I can't stand Apple but I buckled and got a 4GB nano a couple years ago and love it. I think their crap is overpriced compared to other players with bigger drives but I don't regret getting it. I'd say it all depends on what kind of extras you're looking for, if you just want a straight player with the least amount of bullshit and whistles then go with the nano. If you want touch screen features and the option to get apps that range from kinda handy to useless go for the touch.
I say pocket the cash and save up for a real turntable and a mixer to get you started if folks are that interested in DJing. There is so much awesome equipment nowadays, you don't even have to search look for used Technics anymore.