Development continues to enable the TinySC function on the Touch, so it's not something that's ready to roll yet.
If you scan back in the archives at the Slim forum it's remarkable how many (sensible) points Logitech has actually hit from one of the long "SqueezeBox 4 wishlist" posts. I'd swear this thing uses a couple of my posts from the forum as a blueprint.
It should do well for them as one of the items necessary for strong traction in the non-enthusiast market (read: high volume) is being able to run such a device without a server.
Some people on the forum are still wishing for a ripping station, but I think we may have moved on from that point already. With iTunes the number one retailer of music, a large number of people (read: large market and high volume) already consume their music digitally and file-based.
There are a lot of possibilities for mounting this badboy in a car. It's going to be interesting to find out how fast and robust the indexing is and what can be created to plug into the software. It might be nice to copy tracks directly to its attached storage over wifi instead of needing to remove the disk or use SD cards for instance. It's also going to be interesting to look at the code base for the TinySC to see how it compares to the full deal, especially in terms of modifications. In the end, it's still likely to be a lot easier to hack and extend this thing than to ever redevelop or extend existing code base from the empeg repository.
Damn, even using a SqueezePlay implementation on something like an iPhone and then running the server on a small PC somewhere in the car would be a lot more straight-forward and realistic goal.
The USB port is also fully functional and also supports keyboards and mice. I don't know if anyone has tried it with a hub to test multiple devices in unison.
I'll probably pick up a SqueezeBox Radio next and give the Touch some time to develop out.