Does iPod Touch Have GPS?
The short answer: The iPod touch does not have a GPS. The long answer: It kind of does.
"GPS" is short for "Global Positioning System" and uses satellites to determine your location. The iPod touch does not have that type of positioning device installed. Even the iPhone uses a cocktail of GPS, Wifi signals, and telephone signals to locate you.
However, even though the iPod touch doesn't have a GPS, it does have full integration with Google Maps. Using the location of known wifi spots when you're on a wireless network, the iPod touch can tell you your rough location. From there, you can unlock all the GPS-esque features that you're used to, including directions, nearby restaurants and businesses, and even live traffic updates.
So if you're expecting to find your way without Wifi, you won't have a GPS's full abilities. However, the iPod touch does work seamlessly with Wifi and Google Maps to provide you with a decent approximation.