Your body needs the energy to properly digest food. So to get the most out of the nutrients you consume and your workout, eat before exercising or 30 mins after fruit, two hours after veggies, three hours after grains four hours after meats and poultry.
So it's not a matter of value, it's a matter of what you need it to hold. And a matter of affordability. The movies will be the biggest space hog. So if you only put the movie you want to watch next on the iPod touch, so one (or two) movies at any given time, you will have more than enough space with either 16 or 32 GB. People watch movies once (twice if it's really good); they do not watch a movie over and over again like listening to songs.
Yes, a 16 GB only has 14.2 GB available to the user, The difference is taken up by the operating system and of how GB is advertised and actually reported. How many songs depends upon the song's length, and more importantly the compression used. In the Summary pane for the iPod in iTunes you can compress the songs.