Mine is first gen, not had any problems at all. 8gb is a bit small though
Why you'd buy a touch just for gym and car is beyond me tbh, they're huge, so in a gym its gonna be bulky and awkward, and in a car, if you wanted to change tracks whilst driving (not that you would as this is illegal) but surely messing with a touch screen would be bloody awkward with bumps in the road etc?