Yes, this is possible, at the moment there isn't an official editor/compiler. X-Code (also known as Objective C) is a programming language that with the correct compiler, can create iPod Touch/iPhone apps.
(Original Answer)
[No. X-Code and Interface Builder are only available on Mac's and only run on Mac's.
You will also need to know Objective-C, which is the programming language to make apps.
But I think there is a way to make them with something called 'Jiggy' and 'jiggy runtime' but not a 100% sure...]
To make an iPod touch app undeletable, go to Settings > General > Restrictions, and there should be a button that turns off "deleting apps".
On the iPod touch you have to have an app to text if you do then your app has a number
The App Store app automatically comes pre-installed in the iPod Touch.
Yes, there is a MyTown 2 app for the iPod touch.
Comes as an app on the ipod touch
No, there is not a video camera app. The iPod Touch does not have a video camera, so it would not be useful on an iPod Touch.
i forgot my ipod touch username for app store?
There is an App Store app on the iPod Touch that is used to download apps.
go to the app store located on your ipod touch or on itunes store on your computer
No it's not a app for iPod touch I searched the app store didn't find the right match
Updating the software to 2.0 does not make the generation of the iPod Touch a 2nd gen.
On most iPod Touch Phones the texting app is needed to be payed for.