Is the Dsi Better than the Ipod touch?

This is a matter of opinion and mainly what you wish to use it for. Music and other forms of media are certainly superior on the Ipod. But that is simply because no model of the DS is really made for such. Games however the DS has a much larger library of professionally made games and has many popular titles.

If you want a multimedia device with some decent games go with the Ipod touch if the games are your main reason for purchase than go with the DSi.