Yes but it's IMessage
Ios 7 is the latest ios. Ios 7 is available on the fifth generation iPods, recent iPads and iPhones 4 and 5.
No it doesn't but iOS 5 will allow texting as it introduces iMessage app which gives free texting to all iPads iPods and iPhones.
The Apple Message App comes pre-installed on iOS 5.
When you use iMessage it appears blue if the other person has IOS 5. It appears green if the other person has IOS 4 or less. You can access your message setting and make it use SMS only then it'll appear green all the time.
You can download an app like Textfree or, in iOS 5, you can message via iMessage app that comes with the update
Yes, Apple iOS 5 is free.
The apple iOS 5 update IS OUT NOW
It doesn't affect it at all. All your songs and programs will still be there. Some of them may need to be updated to versions that are compatible with IOS 5.
You cannot. If you buy a new iPod or iPad or iPhone, it comes in iOS 4.3.3 and you have a choice to update to IOS 5 or not.
The apple iOS 5 update IS OUT NOW
Yes you can.
You can update it to iOS 5 the same way you update it to any other iOS version. The 4th generation (and indeed the 3rd generation) iPod Touch can be updated to iOS 5.