looking at getting an iPod touch, but a few questions

[jono_0101]

hey everyone, im starting this thread because sadly, my 160 GB ipod classic has finally bit the dust after years of faithful service. i am trying to decide what to do now.

the last time i talked to someone at the apple store i think i remember him telling me that i could trade in the broken model and get credit towards a refurbished or new product, so now im just looking for some info to help me decide what to get. the ipod touch looks pretty cool, but a couple questions

if i remember right, with the touch i can stream directly from my itunes library on my home computer, so i wont need a very big hard drive, is this true? and if so, how does it handle streaming video files? i watch a lot of movies and tv on my ipod if im on the treadmill or bike at the gym, and when im taking long trips, so i need it to be able to steam video well

and ive read a few reviews saying that it is very fragile when it comes to condensation, people writing reviews on amazon have made claims that even sitting it near a bottle of water, or getting a drop of sweat on it while working out, or going from hot to cold temperatures too quickly will break the screen and trip the moisture sensor inside voiding the warranty, had anyone had any first hand experience with this, and are these legit complaints, or just user error?

finally, has anyone heard or have any information about maybe a new generation of regular ipods coming out soon that i might want to wait for, or should i just go find something new now?

thanks in advance for your help!