I'd have to agree with both sides here, if keyboard and wifi are moot then the Touch is most likely the correct decision since just having more memory is already a big plus.
However, dishe's point is very valid. I have had both devices and kept the Touch, but at the beginning it took some time to get used to having less hard keys. And the one thing I miss a lot from my Mogul is the scroll wheel... the slider on the Touch is not for me.
There are workarounds, like installing AE Buttons Plus. This will help a lot, but it is not the same as having the actual hard keys.
I'd go play with a Touch in a store and also a Mogul... then make your choice. In the end it'll depend on your personal needs, we can only share personal experience and opinions
