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What is the difference between an ipod nano and an ipod touch?

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I mean I know one is touch screen and the other is not. But to me that seems like a bit more of a drag down. If you have to touch the screen everytime you want to do something then that means you would always have to take it out of your pocket and look at what your pressing right? Well I have an ipod nano and it seems easier to use than an ipod touch. But then again I don't know. I have never used the touch before. So can someone tell me why the touch is so popular now? Is it because if its futuristic touch screen features or is there something more to it?